Protectionism does not pay: Raising import tariffs to hurt Indian consumers

India should use this opportunity to boost its own productivity and improve its infrastructure at a lower cost

Last Thursday, US President Donald Trump announced his decision to impose 25 per cent tariff on imported steel and 10 per cent on imported aluminium. Not surprisingly, this sent shock waves across the world as exporters of various commodities feared that the protectionist impulse in the US would lead to a full-fledged trade war. In fact, Mr Trump specifically mentioned India and China as he laid out his policy. “We’re going to be doing a reciprocal tax programme at some point so that if China is going to charge us 25 per cent or if India is going to charge