Predictable Trade War After the Shanghai Composite Index plunged in value, the headlines say that the Chinese were “caught off guard” by President Trump’s announcement of counter-retaliatory tariffs on $200 billion of Chinese exports. Wall Street was also supposedly surprised by the move. There are smart people in the Chinese government, on Wall Street and in Shanghai. Donald Trump’s trade war strategy has been clear as day from the beginning. Perhaps it is just the reporters in the media who don’t get what is going on. China will then respond in kind and on and on – that is the way the tit for tat of a trade war proceeds until there is a peace agreement. Some speculate that China will turn its consumer...