Trade tensions like these often create ripple effects economically as well politically throughout the world. Smuggling and dumping are real risks, and countries like India has been dealing with for a long time. We must act cautiously to protect our economy. Lot of our medium to long term economic growth plans depends on globalisation and growth in exports.Some of my thoughts. China is dumping a lot of (more than what anyone can imagine) shit items in all countries.
They are just on a manufacturing spree and dumping dumping and dumping.
US don't want that to continue forever. China is making a lot of money by exporting things to US and other countries.
Now that US has asked for more tax from China if they want to send things to US, China will do 2 things -
Stop sending to US, instead dump on all other smaller countries.
China will also retaliate, ask US to pay more tax to send US things to China.
Here winner will be China because their manufacturing power is much more than US.
US has money, but cheap manufacturing is with other countries.
Another thing that can happen is Chinese items will be smuggled into US. Smuggling will increase.
Third thing is China will dump their shit products in other countries including India. That is not good for us.
Now other countries know that Trump is a fool and they can talk to US and bring down the taxes.
So they kept quiet and played it safe. But since it is a direct attack on China, they retaliated.