Trump’s 50 per cent tariff (basic 25% plus additional 25%) on Indian exports to the US has generated panic not only within the government circles but also in labour-intensive export sectors like textiles, gems and jewellery, leather goods and marine products.

Even as the India-USA Bilateral Trade Agreement negotiations seem bogged down because of market access challenges, the punitive additional tariff of 25% has come into effect, as Trump wants India to stop buying oil from Russia.

Fear of a sharp decline in exports to the US and the consequent—unaffordable—job losses at home has spurred the policymakers into damage-control mode. Suddenly, we are overwhelmed by events. Our dependency has become our vulnerability; we seem to be underprepared to ride out the storm.

Did we learn anything from Trump’s previous stint (2017-2020) at the White House?

Looks like we have not.

It was not too far back; just six years ago in 2019, Trump imposed tariffs on India’s steel and aluminium product imports and demanded greater market access for the US dairy items, agri-commodities, medical devices, etc. In addition, India was excluded from the Generalised System of Preferences (GSP) scheme.

India retaliated with customs duty on the US-origin goods, including lentils, apples, tree nuts (dry........

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