The Take The hidden cost of Trump’s tariffs
Nov 5, 2025
Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, dives deep into the fallout of Trump's tariffs, especially on India’s economy. She highlights the severe impact on factory workers, with dramatic drops in exports and rising layoffs, particularly in textiles and jewelry. Ghosh points out how erratic tariffs create uncertainty for consumers and manufacturers alike. She also discusses the need for India to rethink its trade strategy and warns that consumers will eventually feel the pinch of these tariffs.
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Uncertainty, Not Just Tariff Rates
- Jayati Ghosh says the core harm from tariffs is uncertainty, not just high duty rates.
- That uncertainty slows investment, orders, production and employment in export-reliant countries.
Consumers Feel Delays Before Price Hits
- Ghosh explains US consumers haven't yet felt tariffs due to import bunching and exemptions.
- She warns prices and shortages will appear as temporary stockpiles deplete and duties take effect.
Everyday Items Running Short
- Jayati Ghosh recounts a plumber saying his faucet was the last available because many parts import flows changed.
- She notes fast-fashion firms have stopped sending individual garments to the U.S. due to paperwork and margin loss.