Category:

Education & Tech

India-EU FTA Holds ‘Special Meaning’ for António Costa Due to Indian Roots

by theparliamentnews.com 27 January 2026

written by theparliamentnews.com

New Delhi | European Council President António Costa on Tuesday recalled his deep personal connection with India, saying the landmark India-European Union Free Trade Agreement (FTA) holds “special meaning” for him due to his Indian roots.

Speaking at a joint press conference with Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, Costa revealed that he is an Overseas Citizen of India (OCI) and proudly traces his family origins to Goa.

“I am the President of the European Council but I am also an overseas Indian citizen. For me, it has a special meaning. I am very proud of my roots in Goa, where my father’s family came from. The connection between Europe and India is something personal to me,” Costa said, while displaying his OCI card.

Calling the moment historic, he said the agreement marks a new chapter in India-EU relations across trade, security, and people-to-people ties. Costa also recalled that the trade negotiations were relaunched during the India-EU Leaders’ Meeting in May 2021, which he hosted in his previous role.

Costa has earlier spoken publicly about his Indian heritage. Addressing a Pravasi Bharatiya Divas event in 2017, he said his family hailed from Madgaon in Goa and that he still has relatives there.

Earlier in the day, India and the European Union formally sealed the long-awaited FTA, described as the “mother of all deals,” alongside two major agreements on security and defence cooperation and the mobility of Indian professionals to Europe.

The two sides also adopted a joint strategy document titled ‘Towards 2030 – A Joint India-European Union Comprehensive Strategic Agenda,’ aimed at deepening bilateral cooperation over the next decade.

Short Summary

European Council President António Costa recalled his Goan roots and OCI status as India and the EU sealed a historic free trade agreement in New Delhi.

27 January 2026 0 comment

Blog Environment Featured India

World Environment Council Hosts Prestigious 3rd Environment Civilian Awards

by theparliamentnews.com 27 January 2026

written by theparliamentnews.com

𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶. The third Environmental Citizen Award ceremony, organized by the World Environment Council (WEC), was held with great dignity and success at the India International Centre (IIC) on January 25, 2026. The event, which ran from 10 AM to 1 PM, was attended by environmentalists, policymakers, social activists, academicians, youth representatives, media personnel, and corporate representatives from India and abroad.
The team sent by His Holiness Swami Chidanand Saraswati Ji Maharaj, the chief guest, added a spiritual and grand touch to the program with the chanting of mantras during the lamp lighting ceremony, making the entire event even more dignified. The special guests included Tara Nath Adhikari (Minister – Economic, Embassy of Nepal), O.P. Rajpurohit (IBS(R), Doordarshan, New Delhi), Dr. Mannu Singh Tomar (National President, Bharatiya Namo Sangh), Mahamandaleshwar 1008 Disha Ji Maharaj, Mahamandaleshwar 1008 Ananta Ji Maharaj Prayagraj, and Gaurav Tiwari, Mamta Singh, Chief Editor, Sakriya Bharat News.
On behalf of the WEC Board of Directors, Prof. Ganesh Channa (Founder and President), Dr. Srikanth Merguna (Secretary), and Anmol Sharma (Executive Member), Aditya Channa, Rahul Gardas, and Chandrakant Yadwad led the event and highlighted the organization’s visionary initiatives related to environmental protection.
Awards Presented : The ceremony honored individuals and institutions for their remarkable contributions in the fields of environment, sustainable development, education, policy, media, innovation, and youth leadership in various categories.
The Paryavaran Bhushan Award was presented to Dr. Vijay Kumar Shah.
The Paryavaran Shri Award was given to His Holiness Swami Chidanand Saraswati Ji Maharaj and Sonam Wangchuk Lepcha.

The Global Environmental Leader Award was presented to Dr. Shobha Sondhia and Bindu N. S. Corporate Environmental Excellence Award was presented to Capri Global Capital Limited, Ansh Mirchandani (Airmark Inc.), and Turbo Energy Private Limited.

In addition, dozens of individuals and organizations were honored in various categories including Sustainability Business Excellence, Green Education and Awareness, Sustainability Innovator, Eco-Guardian, Public Policy Impact, Green Youth Icon, Green Republic, and CPR Hero.

The crucial role of volunteers, media, and partners. The success of the event was largely due to the significant contributions of the volunteers, the organizing team, media partners, and all collaborating organizations. Media partners Anmol Times News, Chetan Advertising, and Kalki News provided extensive coverage of the event.

A message of collective commitment to the environment in their addresses, the speakers emphasized the need for collective efforts in environmental protection, climate change, sustainable development, and social responsibility. Prof. Ganesh Channa stated that WEC’s objective is not merely to bestow awards, but to inspire positive change in society.

The program concluded with a vote of thanks and a resolution to undertake more effective environmental initiatives in the future. The third Environmental Citizen Award ceremony proved to be an inspiring and landmark event for those working in the field of environment.

#worldenvironmentcouncil #paryavaranbhushan #paryavaranshri #IICdelhi #delhi #news #today

27 January 2026 0 comment

Blog Business Education & Tech Featured India

India-Russia Oil, US Tariffs and a Diplomatic Opening

by theparliamentnews.com 24 January 2026

written by theparliamentnews.com

The United States has signalled a possible diplomatic pathway to remove the additional 25% tariffs imposed on India, following a sharp decline in Indian refinery purchases of Russian oil. The indication came from U.S. Treasury Secretary Scott Bessent during the World Economic Forum in Davos.

Speaking to Politico, Bessent said India’s imports of Russian crude by its refineries have “collapsed” after Washington imposed the tariff, calling the outcome a “huge success” for U.S. policy. While the tariffs remain in place for now, he suggested that conditions exist under which they could be lifted.

“We put a 25 per cent tariff on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off,” Bessent said.

The remarks come amid heightened geopolitical tension over energy security, sanctions on Russia, and global trade realignments. India has repeatedly defended its energy strategy, stressing the need to ensure affordable fuel for its population of over 1.4 billion people.

New Delhi has also acknowledged a proposed bipartisan bill in the U.S. Congress that could impose duties of up to 500% on countries purchasing Russian oil. Reacting to the development, Ministry of External Affairs spokesperson Randhir Jaiswal said India is closely monitoring the situation.

Bessent further criticised European nations for purchasing refined petroleum products from India that originate from discounted Russian crude, accusing them of indirectly financing the war in Ukraine. He described Europe’s stance as “ironic,” arguing that while the EU avoided similar tariffs on India, it continues to buy refined products made from Russian oil.

The comments come as India and the European Union prepare for the 16th India-EU Summit in New Delhi, where a comprehensive strategic agenda and a long-pending Free Trade Agreement are expected to be finalised. European Commission President Ursula von der Leyen has described the FTA as “the mother of all deals,” potentially creating a market of nearly 2 billion people and covering about a quarter of global GDP.

As global trade faces disruption due to Washington’s tariff policies, India continues to balance strategic autonomy, energy security, and evolving partnerships with both the U.S. and the EU.

Short Summary

U.S. Treasury Secretary Scott Bessent has hinted at a possible removal of the 25% tariffs on India, saying Indian refinery purchases of Russian oil have sharply declined, calling the tariff policy a “huge success” while leaving room for diplomacy.

24 January 2026 0 comment

Blog Business Education & Tech Featured technology

ChatGPT’s Wealth Advice Sounds Surprisingly Old-School

by theparliamentnews.com 24 January 2026

written by theparliamentnews.com

ChatGPT delivered a surprisingly grounded response when asked what a “normal person” should do to become financially free echoing advice long championed by seasoned investing experts.

The moment unfolded on The Diary of a CEO podcast, where host Steven Bartlett posed a deliberately simple question to the AI chatbot. Bartlett, who earns $50,000 a year in the hypothetical scenario, asked ChatGPT to give a one-sentence answer on achieving financial freedom, drawing on “all the wisdom in the world.”

Before revealing the AI’s response, Bartlett turned to guest JL Collins author of The Simple Path to Wealth and a leading voice in passive investing. Collins’ advice was succinct: avoid debt, live below your means, and invest the surplus.

ChatGPT’s answer closely mirrored that philosophy. The chatbot recommended consistently saving and investing in low-cost, broad-based index funds such as the S&P 500, while living below one’s means and allowing compounding to work over time.

Bartlett followed up with another broad question: “How do I earn more?” Once again, the AI’s advice aligned with traditional thinking suggesting the development of high-demand skills, seeking career advancement, exploring side hustles, or investing in assets that generate passive income like real estate or dividends.

Collins noted that the response closely resembled principles from his own work, joking that ChatGPT may have “mined his book.” However, the conversation also turned toward the future of work. Collins observed that skills like programming, once considered essential, may no longer guarantee security in the age of artificial intelligence.

That concern was echoed by OpenAI CEO Sam Altman, who has warned that AI-driven automation could significantly disrupt employment. Altman has said that many customer support roles may be replaced by AI, and that roughly half of all jobs historically undergo major change every 75 years a process he believes may now happen much faster.

The exchange highlights a striking paradox: while AI is expected to reshape careers and disrupt labour markets, its financial advice at least for now remains firmly rooted in old-school discipline rather than get-rich-quick promises.

Short Summary

ChatGPT’s advice on becoming financially free surprised listeners by closely matching the guidance of veteran investor JL Collins emphasising saving, low-cost index investing, skill development and long-term compounding over flashy shortcuts.

24 January 2026 0 comment

Blog Education & Tech Featured technology

Explosive Growth, No Profit: Inside OpenAI’s Ad Gamble

by theparliamentnews.com 23 January 2026

written by theparliamentnews.com

OpenAI’s reported move toward advertising including testing ads within ChatGPT responses and preparing a Super Bowl LX commercial signals a major strategic pivot for the AI giant. Once framed as one of humanity’s most transformative inventions, ChatGPT is now confronting a far more prosaic challenge: how to survive financially.

On the surface, OpenAI’s numbers appear extraordinary. Recurring revenue reportedly reached $20 billion in 2025, up tenfold in just two years. ChatGPT claims around 800 million active users, with over a million businesses paying for access. By conventional startup metrics, the company looks like a runaway success.

Yet profitability tells a very different story. According to Deutsche Bank estimates, OpenAI could accumulate as much as $143 billion in negative cumulative free cash flow between 2024 and 2029. With only about $17 billion in cash reserves and infrastructure commitments reportedly running into the trillions, analysts argue the company faces an unprecedented scale of losses one that dwarfs even Amazon’s famously unprofitable early years.

Unlike Amazon, however, OpenAI lacks a diversified, cash-generating core business to subsidise its long-term bets. That contrast is clearest when compared with Google. Alphabet’s AI investments sit atop hugely profitable pillars Search advertising, YouTube, Google Cloud and Workspace all of which generate stable cash flow. Google also owns much of its infrastructure and chip supply, while OpenAI remains dependent on external providers for computing power.

This structural gap has made OpenAI’s path to profitability increasingly uncertain. The company would reportedly need to grow annual revenue to around $200 billion within four years to break even a target that appears implausible under existing growth levers. Market expansion adds computing costs rather than lowering them. Price hikes are constrained, with only about 5 per cent of users currently paying for subscriptions. Product diversification, including video generation, browsers and hardware, further raises capital and R&D expenditure.

Against this backdrop, advertising has emerged as a reluctant fallback. OpenAI has begun experimenting with ads in free and low-cost tiers, despite CEO Sam Altman previously calling advertising a “last resort.” Analysts estimate ads could bring in around $25 billion annually by 2030 a significant sum, but far short of what would be required to offset projected losses.

The planned Super Bowl commercial may reinforce OpenAI’s ambition and cultural relevance, but it also underlines a deeper reality: innovation alone is no longer enough. Without a clear and credible route to sustainable profit, OpenAI’s bold vision risks colliding with hard economic limits. In the race to define the future of artificial intelligence, the challenge now is not invention it is survival.

Short Summary

OpenAI’s move to introduce advertising in ChatGPT reflects mounting financial pressure despite explosive revenue growth. With massive infrastructure costs, widening losses and limited pricing power, analysts view ads as a last-resort revenue stream that may still fall short of ensuring long-term profitability.

23 January 2026 0 comment

Blog Education & Tech Featured India World

A potential EU–India trade deal with global impact now down to the summit.

by theparliamentnews.com 23 January 2026

written by theparliamentnews.com

The European Union is on the verge of concluding a landmark free trade agreement (FTA) with India, European Commission President Ursula von der Leyen announced on Tuesday (January 20, 2026), calling it “the mother of all deals” that could create a market encompassing nearly two billion people and about a quarter of global GDP.

Speaking at the World Economic Forum Annual Meeting in Davos, von der Leyen said negotiations are in their final stages and that Europe stands to gain a first-mover advantage with one of the world’s fastest-growing economies. “Right after Davos, I will travel to India. There is still work to do, but we are on the cusp of a historic trade agreement,” she said.

European Council President Antonio Costa and von der Leyen will visit India from January 25 to 27 to attend the Republic Day celebrations as chief guests and hold summit talks with Prime Minister Narendra Modi. The two sides are expected to formally announce the conclusion of FTA negotiations at the India-EU summit on January 27.

India is currently the EU’s largest trading partner, with bilateral trade in goods touching $135 billion in FY2023–24. The proposed agreement is expected to significantly boost trade flows, deepen supply-chain integration and open new opportunities across manufacturing, services, technology and green energy sectors.

Beyond trade, the summit is also likely to deliver major strategic outcomes. India and the EU are expected to unveil a defence and security framework, along with a comprehensive strategic vision for the 2026–2030 period. A proposed Security and Defence Partnership (SDP) would enhance defence interoperability and enable Indian firms to participate in the EU’s SAFE programme a €150 billion financial instrument aimed at strengthening European defence readiness.

Negotiations for a Security of Information Agreement (SOIA) are also expected to be launched, which would facilitate deeper industrial defence cooperation. The developments come amid global trade disruptions driven by Washington’s evolving tariff policies, which have affected both India and the 27-nation EU bloc.

India and the EU have been strategic partners since 2004. FTA talks were first launched in 2007 but were suspended in 2013 due to differences in ambition, before being relaunched in June 2022. If concluded, the deal would mark one of the most significant trade agreements for both sides in recent decades.

📌 Short Summary

The European Union is close to finalising a landmark free trade agreement with India, described by Ursula von der Leyen as “the mother of all deals.” Expected to be announced during the India-EU summit on January 27, the agreement aims to deepen trade, defence and strategic cooperation at a time of global trade uncertainty.

23 January 2026 0 comment

Blog Education & Tech Featured Science technology World

Like Wi-Fi for Energy: Finnish Researchers Explore Wireless Electricity

by theparliamentnews.com 22 January 2026

written by theparliamentnews.com

Finland is steadily advancing research into wireless electricity transmission, a technology that aims to send power through the air without traditional cables or plugs conceptually similar to how Wi-Fi transmits data.

In controlled experiments, engineers have demonstrated that electricity can be transmitted wirelessly using highly controlled electromagnetic fields and resonant coupling techniques. While still far from large-scale commercial use, these experiments mark tangible progress in a field that could one day reshape how certain devices are powered.

Finnish researchers, including teams at Aalto University, have contributed significantly to both the theoretical and experimental foundations of wireless power transfer. Earlier studies showed that magnetic loop antennas can transfer electricity at relatively high efficiency over short distances, offering insights into how energy losses can be reduced and coupling optimised.

More recent demonstrations widely shared across global technology platforms have shown Finnish teams successfully powering small electronic devices through the air, indicating that the technology has moved beyond early laboratory proof-of-concept stages toward more practical experimentation.

However, experts caution that current wireless power systems work best only at short ranges and in controlled environments. Performance drops sharply with distance, and systems require precisely tuned electromagnetic fields and specialised receiver hardware. As a result, present-day applications are largely limited to charging small electronics, sensors, robotics, and potentially medical implants.

Research at Aalto University has also explored how wireless power interacts with real-world conditions, including how human tissue affects electromagnetic charging, a factor that could be crucial for biomedical uses such as charging implants without surgical intervention.

Despite growing interest, researchers emphasise that wireless electricity is not a replacement for conventional power grids. Wired infrastructure remains essential for high-power and long-distance transmission. Analysts note that widespread adoption for homes, vehicles, or cities would require years of further research, safety testing, efficiency improvements, and regulatory approval.

For now, Finland’s work highlights genuine scientific progress and reflects a broader global push to develop wireless power technologies that could complement existing energy systems and enable new use cases where wires are impractical.

Short Summary

Finnish researchers are making steady progress in wireless electricity transmission, demonstrating short-range power transfer through controlled electromagnetic fields, though large-scale use remains years away.

22 January 2026 0 comment

Blog Business Education & Tech Featured India technology

Apple Pay Expected to Enter India Market in Coming Months

by theparliamentnews.com 22 January 2026

written by theparliamentnews.com

Apple Pay is reportedly preparing for its long-awaited entry into the Indian market, with the digital payments service expected to launch by the end of 2026, according to a report by Business Standard citing unnamed sources.

The service, which is currently available in 89 global markets, is said to be awaiting regulatory approval in India. Apple is reportedly in discussions with banks, regulators, and card networks to finalise the rollout framework.

In its initial phase, Apple Pay in India is expected to focus on card-based contactless payments rather than the Unified Payments Interface (UPI). The report notes that UPI integration may be introduced later due to more complex regulatory requirements. Apple is also said to be negotiating fee structures with card issuers and is unlikely to seek third-party application provider (TPAP) approval for UPI at the outset.

Once launched, Apple Pay is expected to support Tap to Pay on iPhone, allowing users to make NFC-based contactless payments at compatible point-of-sale terminals. The service can be used via iPhone and Apple Watch at retail stores, restaurants, fuel stations, and other locations displaying contactless payment symbols. It also supports in-app and online payments where Apple Pay is enabled.

The entry of Apple Pay is expected to intensify competition in India’s digital payments ecosystem. Apple’s rival Samsung already offers Samsung Wallet in the country, which supports contactless payments on compatible devices.

Globally, Apple Pay is supported by over 11,000 banks and network partners, including more than 20 local payment networks, according to Apple. If launched, Apple Pay would add another major international player to India’s rapidly evolving digital payments landscape.

Short Summary

Apple Pay is reportedly set to launch in India by the end of 2026, pending regulatory approval. The initial rollout is expected to focus on card-based contactless payments, with UPI integration likely at a later stage.

22 January 2026 0 comment

Blog Business Education & Tech Featured

Trump’s Greenland Comments Shift Focus at World Economic Forum

by theparliamentnews.com 21 January 2026

written by theparliamentnews.com

Trump Revives Greenland Proposal at Davos, Draws Firm European Response
Article

Davos, Switzerland | January 21, 2026:
US President Donald Trump reignited controversy at the World Economic Forum (WEF) 2026 after reiterating his view that the United States should gain control of Greenland, prompting strong responses from European leaders and adding to existing transatlantic tensions.

Speaking during his address at Davos, Trump said the United States would not use force to acquire the Arctic territory but maintained that Greenland was strategically important for US national security and global influence in the Arctic. Greenland is an autonomous territory within the Kingdom of Denmark.

Trump’s remarks were closely watched by world leaders attending the summit, which is traditionally focused on global economic cooperation, trade, and climate policy.

European Leaders Reject Proposal

European officials responded firmly, reiterating that decisions regarding Greenland’s future rest with Denmark and the people of Greenland.

UK Prime Minister Sir Keir Starmer said Britain would not compromise on issues of sovereignty, emphasising respect for international law and self-determination. European Commission President Ursula von der Leyen called for greater European strategic autonomy, particularly in light of rising geopolitical pressure and potential trade measures.

The comments underscored growing diplomatic strains between the United States and its European allies.

Tariff Threats Add to Tensions

Alongside his Greenland remarks, Trump again raised the prospect of imposing 10 per cent tariffs on imports from European countries opposing US plans, with the rate potentially rising to 25 per cent if negotiations do not progress.

The tariff threat has raised concerns among European trade officials, though UK Finance Minister Rachel Reeves said existing economic arrangements between London and Washington were expected to remain stable despite political differences.

Calls for Dialogue

Amid the escalating rhetoric, US House Speaker Mike Johnson, addressing lawmakers in the UK Parliament, urged restraint and dialogue, calling for continued cooperation between the United States and its allies.

Broader Implications

Trump’s remarks shifted attention at Davos from economic collaboration to geopolitical divisions, raising questions about the future of:

NATO unity

Transatlantic trade relations

Arctic governance and sovereignty

Greenland’s strategic location, mineral resources, and role in emerging Arctic shipping routes have increasingly placed it at the centre of global geopolitical discussions.

World leaders are now watching closely to see whether the dispute moves toward negotiation or further diplomatic escalation.

Short Summary

Trump’s remarks were closely watched by world leaders attending the summit, which is traditionally focused on global economic cooperation, trade, and climate policy.

European Leaders Reject Proposal

European officials responded firmly, reiterating that decisions regarding Greenland’s future rest with Denmark and the people of Greenland.

The comments underscored growing diplomatic strains between the United States and its European allies.

Tariff Threats Add to Tensions

Calls for Dialogue

Broader Implications

Trump’s remarks shifted attention at Davos from economic collaboration to geopolitical divisions, raising questions about the future of:

NATO unity

Transatlantic trade relations

Arctic governance and sovereignty

Greenland’s strategic location, mineral resources, and role in emerging Arctic shipping routes have increasingly placed it at the centre of global geopolitical discussions.

World leaders are now watching closely to see whether the dispute moves toward negotiation or further diplomatic escalation.

Short Summary

US President Donald Trump renewed calls for US control of Greenland during his Davos address, prompting firm pushback from European leaders. The remarks, combined with renewed tariff threats, have heightened diplomatic tensions between the United States and its European allies.Davos, Switzerland | January 21, 2026:
US President Donald Trump reignited controversy at the World Economic Forum (WEF) 2026 after reiterating his view that the United States should gain control of Greenland, prompting strong responses from European leaders and adding to existing transatlantic tensions.

Trump’s remarks were closely watched by world leaders attending the summit, which is traditionally focused on global economic cooperation, trade, and climate policy.

European Leaders Reject Proposal

European officials responded firmly, reiterating that decisions regarding Greenland’s future rest with Denmark and the people of Greenland.

The comments underscored growing diplomatic strains between the United States and its European allies.

Tariff Threats Add to Tensions

Calls for Dialogue

Broader Implications

Trump’s remarks shifted attention at Davos from economic collaboration to geopolitical divisions, raising questions about the future of:

NATO unity

Transatlantic trade relations

Arctic governance and sovereignty

Greenland’s strategic location, mineral resources, and role in emerging Arctic shipping routes have increasingly placed it at the centre of global geopolitical discussions.

World leaders are now watching closely to see whether the dispute moves toward negotiation or further diplomatic escalation.

Short Summary

21 January 2026 0 comment

Blog Business Education & Tech

Tariffs Act Like a Tax on US Households, Research Finds

by theparliamentnews.com 20 January 2026

written by theparliamentnews.com

Article

US President Donald Trump has once again defended the use of tariffs as a central economic policy tool, arguing that import duties help the government raise revenue, protect domestic industries, and encourage consumers to buy American-made products. However, economic data and independent studies suggest that the burden of tariffs largely falls on US consumers and businesses, rather than foreign exporters.

The latest dispute follows Trump’s warning that the United States will impose 10 per cent tariffs from February 1, rising to 25 per cent by June 1, on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, unless these countries support his proposal for the US to acquire Greenland. The tariffs would remain in place until what Trump described as a “complete and total purchase” is agreed upon.

Trump has justified the move by calling Greenland “vital to US national security” and citing concerns over European activity in the Arctic region.

Trump’s Case for Tariffs

Trump has consistently argued that tariffs:

increase government revenue,

reduce the US trade deficit,

push consumers toward domestically manufactured goods, and

encourage companies to invest and produce within the United States.

He has framed trade deficits as evidence that the US is being economically disadvantaged by foreign countries and has repeatedly claimed that tariffs can restore manufacturing jobs and industrial capacity.

Rising Costs for Consumers

Evidence from recent years suggests that tariffs tend to raise prices for American consumers. According to the BBC, US inflation rose to 3 per cent in the year ending September, up from 2.4 per cent in April, before easing to 2.7 per cent in November and December.

Several major retailers, including Target, Walmart, and Adidas, have indicated that higher import costs resulting from tariffs are passed on to consumers through price increases.

Industries that rely on global supply chains are particularly affected. In the automobile sector, parts frequently cross US, Mexican, and Canadian borders multiple times during production, meaning tariffs increase costs at several stages of manufacturing.

Who Really Pays?

A study by the Kiel Institute for the World Economy found that around 96 per cent of tariff costs are borne by US buyers, including households and businesses, while only about 4 per cent is absorbed by foreign exporters through lower prices. This makes tariffs function similarly to a consumption tax.

Earlier analyses by institutions such as Goldman Sachs showed that while US firms initially absorbed some tariff costs, these expenses were increasingly passed on to consumers over time.

Various estimates suggest that tariffs have acted like a tax increase of roughly $1,100–$1,500 per household per year, with a US Congressional report estimating the 2025 cost at around $1,200 per family.

Impact on Trade and Jobs

Trump has claimed that tariffs would reduce the US trade deficit. However, during the earlier trade war, the US trade deficit with China widened from about $375 billion in 2017 to $419 billion in 2018, before declining modestly in 2019. Economists note that tariffs often redirect trade flows rather than reducing overall deficits.

Employment data also shows limited benefits. While some protected sectors such as steel and aluminium saw modest job gains, overall manufacturing job growth remained weak. In several industries, higher input costs led to job losses instead of gains.

Research from the Federal Reserve and the International Monetary Fund indicates that tariffs weighed on GDP growth and investment. Estimates cited by The Independent suggest the trade war reduced US economic output by $40–$60 billion annually.

A Mixed Economic Record

While tariffs have provided targeted protection for certain industries, broader data suggests they have increased costs for consumers, strained supply chains, and delivered limited gains in employment and trade balances. Economists widely agree that tariffs alone are unlikely to achieve long-term economic objectives without broader structural reforms.

Short Summary

Donald Trump argues that tariffs boost US revenue, protect domestic industries, and reduce trade deficits. However, studies show that most tariff costs are passed on to American consumers, raising prices, increasing household expenses, and delivering limited gains in manufacturing jobs or trade balances.

20 January 2026 0 comment

Newer Posts

Older Posts

Education & Tech

India-EU FTA Holds ‘Special Meaning’ for António Costa Due to Indian Roots

World Environment Council Hosts Prestigious 3rd Environment Civilian Awards

India-Russia Oil, US Tariffs and a Diplomatic Opening

ChatGPT’s Wealth Advice Sounds Surprisingly Old-School

Explosive Growth, No Profit: Inside OpenAI’s Ad Gamble

A potential EU–India trade deal with global impact now down to the summit.

Like Wi-Fi for Energy: Finnish Researchers Explore Wireless Electricity

Apple Pay Expected to Enter India Market in Coming Months

Trump’s Greenland Comments Shift Focus at World Economic Forum

Tariffs Act Like a Tax on US Households, Research Finds

Our News Portal

About Links

Useful Links

Newsletter

Laest News

Are you sure want to unlock this post?

Are you sure want to cancel subscription?

Queue