Trump's Tariffs and the AI Factor

Donald Trump's economic policies shave met with stupefaction and withering scorn on the part of journalists and economists worldwide.

- By Dr. Vinoth Ramachandra

However, among the criticisms of his "liberation" rhetoric, I have not yet come across any reference to the role AI plays in the new global economy and in his ambitions.

Given the impact tariffs will have on American consumer spending, it is unlikely that Trump's policy will survive for very long. Nevertheless, we need to remember that Trump is hand-in-glove with, and perhaps even a puppet of, the hi-tech billionaires who got him to where he is today. And China is their biggest obstacle to the global domination they crave.

We also need to remember who contributes to the global AI empire of Google, Microsoft, Amazon, Meta, Palantir, OpenAI and their lesser-known rivals. The answer: All of us.

The language of “cloud computing”, “virtual reality” and “cyberspace” has blinded us into thinking that the web and AI systems are floating in an ethereal, other-worldly sphere that is divorced from physical bodies and their natural environments.

However, AI relies on manufacturing, transportation, and physical human work; on data centres, undersea cables and satellites. And the computing industry cannot function without the minerals and resources that go into our smart phones, laptops and supercomputers. Much of this is extracted in poor countries and involves processes that leave local communities and their natural habitats devastated. AI demands vast quantities of energy and minerals.