On April 2, 2025, and in the days following, we will know whether the world will dance to the tune of the modern Pied Piper. If the United States imposed punitive tariffs on goods imported from other target countries, it will be in breach of the WTO rules, multilateral and bilateral trade agreements, and international laws and conventions. However, President Donald Trump does not care for the law, American or any other. He is a law unto himself.

Mr Trump has identified the ‘target’ countries and intends to impose tariffs on select goods imported from the target countries. India is on the list. Tariffs are a barrier intended to keep out foreign goods from entering the domestic market and competing with domestic goods. Apart from tariffs (i.e. customs duties) there are other duties such as anti-dumping duty and safeguard duty.

They are imposed under special circumstances but the exercise is a domestic exercise challengeable only in domestic courts and usually leans in favour of the domestic industry against the foreign exporter. Besides, there are non-tariff barriers under the cloak of quality standards, packaging norms, environmental guidelines, etc. This self-interest got a name — protectionism.

Protectionism was part of the arsenal........

© The Financial Express