If – as Sun Tzu declared in The Art of War – “all warfare is based on deception”, what type of trade war is the US President Donald Trump seeking to wage on his enemies, to make America great again?
Can we expect the full frontal assault deployed, for example, against Japan in the 1980s? Or in these days of asymmetry and misinformation – a strategy the Russians call Maskirova – can we expect something a little less obvious, more nuanced, but packing just as powerful a punch?
Certainly, the underwhelming market response to news last week – that the US had imposed trade tariffs on South Korean washing machine and Chinese solar panel manufacturers – suggests only a low probability of a tit-for-tat trade war breaking out. In fact, equity markets in Seoul and Shanghai actually closed higher in the days after the tariff news was announced.
Read the rest of the article here.