Best of the Week | The USA and tariffs: A brief history

US President Donald Trump’s announcement of new reciprocal tariffs this week marks the latest chapter in America’s long and complex history with trade protectionism. While tariffs have been used as economic tools for centuries, their effects have often exceeded their intended purpose, reshaping industries, global trade relations, and domestic economic policies. Let's take a look at the history of tariffs and their relationship with the US.

US’ legacy of tariffs

Historically, tariffs have played a major role in shaping the US economy. One of the most enduring examples is the 1960s “chicken war”, which led to the 25% tariff on imported pickup trucks, known as the "chicken tax". This measure, initially imposed by then US President Lyndon Johnson in retaliation for European tariffs on American poultry, reshaped the US auto industry by protecting domestic manufacturers and limiting foreign competition. Decades later, this tariff remains in place, discouraging overseas automakers from entering the lucrative US pickup market and leading to higher consumer prices.

Trump’s tariff strategy and its historical context

Trump’s approach to tariffs differs from previous administrations in both scope and execution. While past US presidents like Ronald Reagan and Richard Nixon imposed tariffs with clear strategic goals—such as strengthening specific industries or influencing currency values—Trump’s policies have often shifted in rationale, ranging from economic nationalism to national security concerns.

During his first term as US president (2017-21), Trump imposed sweeping tariffs on steel, aluminium, and goods from China, Canada, and Mexico, arguing the new levies would boost domestic manufacturing. However, these measures led to higher prices for consumers and failed to reverse the long-term decline in manufacturing jobs as a share of total employment.

At Mint, we have been covering the entire tariff saga. You can read our best stories on Trump’s tariff tantrums by clicking here.

Here are a few articles on this week's tariff announcements:

Trump’s tariff strike: India hit with 27% duty as trade war escalates

In charts: How exposed is India to Trump's reciprocal tariffs?

Are Trump’s tariff rates made up? Here’s how they have been calculated

The tariff timeline: How Trump 2.0 policy is reshaping global trade

On to the best of Mint’s work from this week.

Sweet Buyout

PE firm ChrysCapital is set to acquire a controlling stake in Theobroma Foods for ₹2,200-2,300 crore, leading to ICICI Venture’s complete exit from the bakery chain. Founder Kainaz Messman and family may retain a 10% stake. The deal, expected to be signed soon, follows stalled talks due to valuation concerns. This marks ChrysCapital’s first investment in the consumer foods sector as it expands its India portfolio. India's bakery market, valued at $13.8 billion in 2024, is projected to grow to $31.5 billion by 2033. Read more.

Shifting Dynamics

Amid a sluggish year for India's IT sector, niche segments like manufacturing, healthcare, and energy are driving growth for firms such as TCS, Infosys, Wipro, and Tech Mahindra, even as the banking, financial services and insurance sector remains muted. However, midcap firms like Cyient and Persistent may face stiff competition as their larger peers pivot to these sectors. Experts attribute the shift to post-pandemic digital investments and the rising demand for engineering and R&D services. Read more.

Musical Chairs

India’s retail sector is witnessing a CEO exodus as leaders from Levi’s, Bestseller, Marks & Spencer, and Pepe Jeans switch roles amid slowing growth and rising competition. Executives are leaving long-held positions for fresh opportunities, with firms like Bestseller appointing new leadership. The $1 trillion market faces challenges from inflation-driven shifts to value brands and aggressive new entrants. Experts cite stagnant growth and limited expansion in traditional retail as key reasons for the leadership churn. Read more.

Big Bet

IPL 2025 is witnessing record-breaking viewership, fueled by influencer-driven marketing that engages Gen Z audiences beyond traditional cricket narratives. Teams like Mumbai Indians and Punjab Kings are investing heavily in digital creators to boost fan engagement. Influencer-led campaigns now account for 15% of IPL marketing budgets, with brands expected to spend ₹550 crore on such strategies. Social media platforms like Snapchat are also tapping into the frenzy with exclusive content and AR features. Read more.

Hard Lessons

A new generation of Indian investors, drawn to equities post-pandemic, faces a harsh reality check. Stories of exuberant bets on small- and mid-cap stocks, IPOs, and F&O trading turning into deep losses highlight the pitfalls of inexperience and herd mentality. While some investors took a disciplined approach, many struggled with poor stock picks and volatile markets. Read more.

Growth Under Risk

India’s economic growth is expected to remain resilient in FY26, driven by government spending and a potential revival in private investments, despite risks from escalating US tariffs. India Ratings projects 6.6% GDP growth, highlighting strong performances in power, auto, and infrastructure, while textiles and construction face headwinds. Crisil and Icra see robust domestic demand but warn of modest export growth. Read more.

Taste of Success?

Reliance’s revival of Campa has turned it into a formidable challenger to Pepsi and Coca-Cola, thanks to its aggressive pricing and rural market focus. In just over a year, Campa has captured a 10%+ market share in select states, pushing FY25 revenue past ₹1,000 crore. However, supply chain bottlenecks threaten its momentum, with distributors struggling to meet surging demand. Meanwhile, Reliance continues expanding its FMCG footprint, acquiring brands across beverages, snacks, and personal care to build a comprehensive consumer goods portfolio. Read more.

Clear Signal

The government's ₹37,000 crore equity conversion in Vodafone Idea (Vi) reduces its debt by 17%, providing a financial cushion for 2-3 years. With a heavy debt load of ₹2.3 trillion and regulatory payments of ₹18,600 crore in FY26, Vi still needs higher revenue per user and government aid to survive in the long-term. The move, however, stabilizes the telecom sector by preventing an Airtel-Jio duopoly. Read more.

AI Bookkeepers

Tally Solutions, a go-to accounting service for India’s MSMEs, has thrived for 40 years without external funding, boasting 7 million users and ₹625 crore in FY24 revenue. As India’s accounting software market grows to $5.75 billion by 2030, Tally is embracing AI while fending off VC-backed challengers, balancing innovation with its deep-rooted user-first philosophy. Read more.

Bumpy Ride

The Karnataka High Court has banned bike taxis until the state sets clear guidelines under the Motor Vehicles Act, giving the government three months to act. The ruling disrupts major players like Rapido, Uber, and Ola, affecting over 100,000 two-wheeler taxis and millions of commuters, especially in Bengaluru, where rising metro fares and fuel prices have increased transport costs. While some states have imposed similar bans, Maharashtra recently approved e-bike taxis with restrictions. Read more.

That’s all for this week!

If you have any feedback, want to talk about food, or have anything else to say about our journalism, write to me at siddharth.sharma1@htdigital.in or reply to this mail. You can also write to feedback@livemint.com.

Best,

Siddharth Sharma