Protectionism and Its Consequences
Globalization is in retreat and protectionism is again rising its head worldwide. Recently the American President Donald Trump announced that he will impose very steep tariffs on imported steel, aluminum products and cars . In retaliation the EU has threatened to impose heavy tariffs on American imports in EU. Trump is also waging a trade war with China by threatening to impose heavy tariffs on Chinese imports. In retaliation China is threatening US with heavy import tariffs too. Here in India the Narendra Modi government also imposed heavy tariff on palm oil, chickpea imports and scores of other items like kites to cosmetics to electronic goods etc., in its recent budget. Is this rising protectionism good for the Indian and the world economy? To understand this question we need to understand how our economic life works. Following brief analysis will show us what will be the impact of this rising protectionism on our lives. Economics of Protectionism Human bei...