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Bobbytek Bobbytek Aug. 14, 2025, 12:03 p.m.
The levies are also likely to reduce America’s economic output, as has happened before. A 2020 study, based on data from 151 countries, including the US, between 1963-2014, found that tariffs have “persistent adverse effects on the size of the pie,” or the gross domestic product of the country imposing them.
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There are a number of possible explanations for this.
One is that, when tariffs are low or non-existent, the country in question can focus on the kind of economic activities where it has an edge and export those goods and services, Gimber told CNN.
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“If you raise tariffs, you’re not going to see that same level of specialization,” he said, noting that the result would be lower labor productivity. “The labor could be better used elsewhere in the economy, in areas where you have a greater competitive advantage.”
Another reason output falls when tariffs are raised lies in the higher cost of imported inputs, wrote the authors of the 2020 study, most of them International Monetary Fund economists.
Fatas at INSEAD suggested the same reason, providing an example: “So I’m a worker and work in a factory. To produce what we produce we need to import microchips from Taiwan. Those things are more expensive. Together, me and the company, we create less value per hour worked.”
Yet another way tariff hikes can hurt the economy is by disrupting the status quo and fueling uncertainty over the future levels of import taxes. That lack of clarity is particularly acute this year, given the erratic nature of Trump’s trade policy.
Surveys by the National Federation of Independent Business in the US suggest the uncertainty is already weighing on American companies’ willingness to invest. The share of small businesses planning a capital outlay within the next six months hit its lowest level in April since at least April 2020, when Covid was sweeping the globe.
“The economy will continue to stumble along until the major sources of uncertainty (including over tariffs) are resolved. It’s hard to steer a ship in the fog,” the federation said.
Whichever forces may be at work, the IMF, to cite just one example, thinks higher US tariffs will lower the country’s productivity and output.
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CurtisDeaxy CurtisDeaxy Aug. 14, 2025, 11:17 a.m.
When British traders landed on India’s shores in the 1600s, they arrived in search of spices and silk but stayed for centuries – leaving behind a legacy that would shape the nation long after their colonial exploitation ended: the English language.
Over the centuries, English seeped into the very fabric of Indian life – first as a tool of commerce, then as the language of law and, eventually, a marker of privilege.
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Now, after more than a decade of Hindu-nationalist rule, Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) is mounting perhaps the most significant challenge yet to the language’s place in India.
“Those who speak English will soon feel ashamed,” Home Minister Amit Shah said last month, igniting a heated debate about national identity and social mobility in the polyglot nation of 1.4 billion.
While Shah did not mention India’s former colonial masters, he declared that “the languages of our country are the jewels of our culture” – and that without them, “we cease to be truly Indian.”
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Spoken behind the walls of colonial forts and offices, English in India was at first the language of ledgers and treaties.
But as British rule expanded from the ports of Gujarat to the palaces of Delhi, it became the lingua franca of the colonial elite.
At independence, India faced a dilemma. With hundreds of languages and dialects spoken across its vast landscape, its newly appointed leaders grappled with the question of which one should represent the new nation.
Hindi, the predominant language in the north, was put forward as a candidate for official language.
But strong resistance from non-Hindi-speaking regions – especially in the south – meant English would remain only as a temporary link to unite the country. It’s a legacy that endures to this day – and still rankles some.
“I subscribe to the view that English is the language of the colonial masters,” Pradeep Bahirwani, a retired corporate executive from the southern city of Bengaluru, said, adding: “Our national language should be a language which… has got roots in India.”
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