“Of all manifestations of power, restraint impresses men most”. Thucydides

The Liberation Day, April 02, “Reciprocal Tariffs” and the follow-through have been anything but.

Singaporean PM, Lawrence Wong, noted with resignation that the recent “Liberation Day” announcement by the US leaves no room for doubt….. The era of rules-based globalization and free trade is over. We are entering a new phase – one that is more arbitrary, protectionist, and dangerous“. Former RBI Governor, Raghuram Rajan, has called it a “jhatka” and a self-goal, at least for the short run.

The men and few women, “manning” the barricades at Pak Secretariat, will be risking the nation’s future if they focus only on the Reciprocal Tariffs to the exclusion of the bigger picture. Do not miss the forest for the trees. The MFN centered WTO framework is dead, at least for now.

The US wants to reindustrialize and throw sand into the wheels of the Chinese juggernaut, 145% tariff etc., and in a side hustle, collect billions from average Americans to pay for tax cuts. Friend shoring, China 1, have been tossed to the sea. Is it the latter-day Iron Curtain? Hum kahan kay dana thay, kis hunar mein yakta thay/Bay-sabab hua Ghalib dushman aasmaan, apna!

Now, there are three kinds of US import taxes. The extant taxes on imports, the Reciprocal ad valorem Taxes, which in itself are two taxes, 10% base tax on all goods, effective since April 05, no reprieve here, levied on........

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