The article generally argues that the implementation of President Donald Trump protectionist policies against China and its trading partners would severely affect the economies of both nations. Real life economic situations have been discussed in the article. Various economic theories can be linked to the learning objective identified. The economic concepts of mercantilism, absolute advantage and global strategic rivalry have close links to the content discussed in the article. For the last 18 months, China and the United States have been involved in serious trade war as each nation tries its best to retaliate against tariffs imposed by its counterpart.