India, Nov. 12 -- Two promises that United States (US) President-elect Donald Trump made during his election campaign could form the core of his economic policy: First, his promise to raise tariffs on everything that the world's largest economy imports by 10-20%, and second, his pledge to take manufacturing jobs from foreign countries by offering incentives to encourage companies to relocate to the US. In other words, the emergence of a staunchly protectionist US could be in the offing.

Almost a century back, another Republican, Herbert Hoover, won the presidential election by promising an increase in tariffs. This culminated in the adoption of the Smoot-Hawley Tariff Act of 1930, which raised tariffs by 40-60%. A trade war followed as t...