New Delhi, Aug. 12 -- The US imposed an additional 25% import tariff on India via an executive order on 6 August, accusing India of fuelling Russia's war machine through its energy imports from the country. Though it is yet to go into effect, this is over and above the 25% 'reciprocal tariff' already levied. Earlier most-favoured-nation tariffs remain in place, making most Indian products uncompetitive in the American market. Such reciprocal, differential and secondary tariffs based on criteria other than economic merit-with geopolitical issues thrown into the decision mix-are unprecedented, baffling economists and policymakers the world over.

History is witness to India's unparalleled capacity to emerge victorious from such challenges, ...