Sujay Rao Mandavilli Trump, tariffs and outsourcing- A ten point action plan FINAL FINAL FINAL FINAL FINAL.pdf

Sujay Rao Mandavilli Trump, tariffs and outsourcing- A ten point action plan FINAL FINAL FINAL FINAL FINAL.pdf

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The USA, tariffs and outsourcing: How this can be a
golden opportunity for other nations to recast the
narrative
Sujay Rao Mandavilli
Published in SSRN, and elsewhere, September 2025
Abstract
The ongoing trade war between the United States and other countries has become the most widely
discussed topic of the year 2025. These tariffs, which were imposed by Trump’s administration, have led
to retaliatory tariffs by a host of other nations, and have led to matching protectionist measures by
other countries around the world. In this paper, we go on to show why the current predicament,
imbroglio and impasse can actually be a blessing for other nations in the long-term as they seek to
leverage their own strengths, not only because protectionist measures have also almost never worked,
but also because the United States currently holds only about four percent of the world’s population. In
this paper, we present a large number of proposals not only for India, but also for other developing
countries, to counter, and make most of a bad situation. Examples of these include strategy, vision, non-
dogma, pragmatism, non-hubris, risk analysis based approaches, a focus and emphasis on foundational
competencies, diversified economic models, bottom up economic models, etc. This paper may appear to
be a digression and a sidestep from our main purposes, but it as a matter of fact may actually be not,
because it furthers the avowed goals of our globalization of movement indirectly. As they say, convert
every crisis into an opportunity.

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Introduction
The ongoing trade war between the United States and other countries has become the most widely
discussed topic of the year 2025. These tariffs, which were imposed by Trump’s administration, have led
to retaliatory tariffs by a host of other nations, and have led to matching protectionist measures by
other countries around the world. In this paper, we go on to show why the current predicament,
imbroglio and impasse can actually be a blessing for other nations in the long-term as they seek to
leverage their own strengths, not only because protectionist measures have also almost never worked,
but also because the United States currently holds only about four percent of the world’s population. In
this paper, we present a large number of proposals not only for India, but also for other developing
countries, to counter, and make most of a bad situation. Examples of these include strategy, vision, non-
dogma, pragmatism, non-hubris, risk analysis based approaches, a focus and emphasis on foundational
competencies, diversified economic models, bottom up economic models, etc. This paper may appear to
be a digression and a sidestep from our main purposes, but it as a matter of fact may actually be not,
because it furthers the avowed goals of our globalization of movement indirectly. As they say, convert
every crisis into an opportunity.
The USA has always stood for free trade; free trade policies have always expanded international trade,
and have lifted many boats pulling hundreds of millions out of poverty; however, they may have harmed
American interests in some ways because other countries did not often reciprocate American gestures
and overtures, thereby putting the USA in peril and in jeopardy. Sensing this, Donald Trump, the
President of the United States, decided to get his act together. During his second presidency which
began in 2024, Donald Trump triggered a large scale global trade war after he imposed a series of
brutal tariffs on virtually all goods imported into the United States. Other countries too reacted bitterly,
imposing retaliatory tariffs of their own. The USA also imposed 25% tariffs on India, later increased to
50% to counter India’s purchase of Russian oil. Subsequently, Trump asked the European Union to hit
China and India with tariffs of up to 100% over the countries’ Russia oil purchases. These tariffs were
supported by the American economist Peter Navarro, the far right activist Laura Loomer, and Bernie
Moreno who also supported the HIRE Act. This acronym stands for Hiring Incentives to Restore
Employment Act, and proposes a 25% tax on outsourced services.
Such protectionist measures have never worked in the past; India’s protectionist policies have lead to
economic autarchy and isolation besides technological stagnation and a no-growth scenario. The
Hawley-Smoot Tariff of 1930 imposed in the aftermath of the Wall Street crash of late 1929, triggered
retaliatory tariffs from other countries, worsening the Great depression in due course. The depression
was alleviated only with the New Deal, a program by Franklin D. Roosevelt which executed large-scale
civic works in the country through the Civilian Conservation Corps (CCC) and Works Progress
Administration (WPA), also establishing long-term economic stability with programs like Social
Security and the Federal Deposit Insurance Corporation (FDIC). Likewise, the banking sector was also
overhauled in the country. In this paper we will show, how the current quandry can actually be a
blessing for other nations in the long-term, because crises almost always provide the basis for

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introspection) and can gradually tilt the scales in favour of a more multi-polar world eventually and
irrevocably. Let us now discuss the meat of our proposals step by step
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1. Be aware of the present, but think long-term
Situational awareness is always extremely important and necessary; this is because, as it is often has
been said, one must always live in the present, and not dwell in the past or the future; however, this
does not mean that the importance of long-term thinking must be discounted; as a matter of fact, it
never should be. All three- namely short-term, medium-term, and long-term thinking must go hand in
hand, and must gel and flow harmoniously and seamlessly. One must also possess a strategy, a plan for
action, and a vision. Many Indian states are now coming up with long-term vision documents, but the
Indian central government has not; in this connection, we must reiterate that short term is something
that is of less than twelve months duration, medium-term is something between two to five years
duration, and long-term is something which is of more than five years duration; this is by no means a
hard and a fast rule, only a general guideline. Long-term vision is always necessary, but must be revised
from time to time, as situations or circumstances gradually or suddenly change, or as new facts emerge
or become available. Long-term vision and strategy must also lead to planning, and planning must be
the fundamental pillar upon which all action must rest.
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2. Identify foundational competencies
Countries must also identify foundational competencies in the long-term; Foundational competencies
refers to foundational or basic skills, abilities, and attributes that are essential for effectiveness in
various roles and settings, and form the basis for further action plans. These are identified often in the
context of organizations, but seldom in the case of nations; the time may now arise to set right this
anomaly and deficiency. Nations may also prepare their own SWOT analysis (Strengths, weaknesses,
opportunities and threats analysis) and risk analysis in due course. Foundational competencies must
become one of the pillars upon which planning activity must rest. However, there must be some
flexibility for course corrections at all times. India’s strength may be its human resource availability, it
weakness its lack of skilling of labour force, and so on.
3. Human resource development as driver for economic growth
Human Resources in the context of national development refers to the management of an nations most
valuable asset, namely its people. For too long, nations have relied extensively and almost exclusively on
resource-driven economic models. This might indeed have been necessary in the heyday of centralized
planning models where materials were seen to perennially in short supply, and their usage had to be
extended and optimized. This old model which was based on digging holes in the ground to optimize the
use of precious resources, is somewhat obsolete now with the rise of renewables and baby steps

1
Pogue, David (December 8, 2024). "Who would pay for Trump's promised tariffs? You will!". CBS News. Retrieved February 3, 2025
2
Wiseman, Paul (September 27, 2024). "Trump favors huge new tariffs. What are they, and how do they work?". AP News. Retrieved March 12, 2025
3
Kiderlin, Sophie (June 10, 2025). "World Bank sharply cuts global growth outlook on trade turbulence". CNBC. Retrieved June 16, 2025
4
Taddonio, Patrice (May 6, 2019). "Trump's Tariff Strategy Can Be Traced Back to the 1980s". PBS. Retrieved April 7, 2025
5
Pløger, John (2001). "Public Participation and the Art of Governance". Environment and Planning B: Planning and Design. 28 (2): 219–241

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towards a more sustainable economy; while we still have a long way to go in terms of achieving a
circular economy and human trusteeship of the planet, we may get there later than sooner with new
and emerging technologies and political will. We have also witnessed the birth of the creative economy
and the orange economy, and human talent and human capital is becoming increasingly vital in a
services-driven economy, and will become a make or break issue for most nations, as they move
towards highly skilled labour and talent specialization. This approach will also naturally help developing
nations play the catch up game with developed ones, and this has always been the goal of our
globalization of science movement.
The following are the list of our papers and publications on pedagogy. As such, we request our readers
to read them in detail. These would explain what we propose to implement, and how we propose to
implement it.
1. Intercalating a multi-barreled approach to educational and pedagogical reform: A brief
summation of our publications on pedagogy IJISRT 2025: July
2. Embracing “Functionalism” in pedagogical theory: Why we may eventually need to justify every
component of pedagogical and course content SSRN 2025: January
3. Rebooting Pedagogy and Education systems for the Twenty-first Century: Why we need course-
corrections immediately Google Books. 2024
4. Unleashing the potential of the ‘Sociology of Science’: Capitalizing on the power of science to
usher in social, cultural and intellectual revolutions across the world, and lay the foundations of
twenty-first century pedagogy, ELK Asia Pacific journal of social sciences, 2021
5. Introducing Anthropological Pedagogy as a Core Component of Twenty-first Century
Anthropology: The Role of Anthropological Pedagogy in the fulfilment of Anthropological and
Sociological objectives ELK Asia Pacific Journal of Social Sciences 2018
Readers are requested to read our papers and publications on pedagogy completely, fully and
thoroughly. We cannot simply repeat them a large number of times in multiple publications or blog
posts. In these papers, we had discussed functionalism in education, theories of pedagogical content, AI
in education, automation of education in the long term, etc. We had also discussed the need to teach
logic and reasoning, scientific method, the ability to distinguish between science and pseudoscience,
critical thinking skills, creative and lateral thinking skills, time and space encapsulation, etc. We had also
discussed teacher training, students’ mind-orientation, comprehensive 360 degree student evaluation,
cultural remediation, bridging of gaps among socioeconomic and sociocultural groups, physical fitness,
career guidance as applicable, vocational training, better school infrastructure including solar power
generation, talent identification and nourishment, flexibility in choice of medium of instruction, lexical
development of languages in terms of technical vocabulary, etc. Again, we beseech our readers to go
through our paper fully- planners must implement them in stages over the course of the next couple of
years. States must also draft their own education plans – this can lead to competitive rivalry, and will set
apart successful states from less successful ones. Readers must also read our multiple publications on
anthropological economics and scientific method; indeed, all these papers are tightly integrated with

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each other in a continuous chain. This is indeed the only mechanism by means of which developing
countries will be able to catch up with developed ones at any point in time.
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4. Infrastructure and communications
Infrastructure refers to the set of facilities and systems that serve a country or a smaller area, and
encompasses the services and facilities necessary for its economy, households and firms to function
smoothly and effectively. Communication on the other hand, is generally taken to mean the
transmission of information quickly effectively and seamlessly through the use of better and
contemporary technology. India has launched major schemes such as national highway development
programs, (Bharatmala Paroyojana) though urban infrastructure remains weak. India’s education system
also remains the weakest link in the chain, and we have proposed steps to address this anomaly. India’s
telecom revolution was led by Sam Pitroda and others, and is now preparing for its 6G revolution. From
the days where it would take years to get a telephone connection, India is now leading in digital
payments, among other things, and cellular phone penetration has also been impressive, even
increasingly in rural areas and regions.
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5. Emphasis on technology, research and innovation
Technology is the application of conceptual knowledge to achieve practical goals, especially in a way
that improves society or civilization. The term technology is also often used to refer to products
resulting from human efforts, including both tangible technology such as machinery, and intangible
products such as software. Research on the other hand, refers to creative and systematic work that is
undertaken to enhance the body of human knowledge. Another related term is Innovation which is the
introduction of something new, examples being a new concept, idea, technique, product, or service,
resulting in tangible improvements, advancements or societal progress. Innovation is crucial for
economic growth, personal well-being, and societal advancement, driving the development of new
technologies and economic opportunities. India is emerging as a research hub, with r&d centres located
in cities such as Gurugram, Noida, Bangalore, Hyderabad, and Chennai, though the country has barely
realized its full potential. India’s patents and copyrights regime is also said to be weak. China has
launched a thousand talents plan, and India has come out with its own plan as well.
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Intercalating a multi-barreled approach to educational and pedagogical reform: A brief summation of our publications on
pedagogy IJISRT 2025: July
7
Embracing “Functionalism” in pedagogical theory: Why we may eventually need to justify every component of pedagogical and course
content SSRN 2025: January
8
Rebooting Pedagogy and Education systems for the Twenty-first Century: Why we need course-corrections immediately Google Books. 2024
9
Unleashing the potential of the ‘Sociology of Science’: Capitalizing on the power of science to usher in social, cultural and intellectual
revolutions across the world, and lay the foundations of twenty-first century pedagogy, ELK Asia Pacific journal of social sciences, 2021
10
Introducing Anthropological Pedagogy as a Core Component of Twenty-first Century Anthropology: The Role of Anthropological Pedagogy in
the fulfilment of Anthropological and Sociological objectives ELK Asia Pacific Journal of Social Sciences 2018
11
M. Nicolas J. Firzli and Vincent Bazi, "Infrastructure Investments in an Age of Austerity: The Pension and Sovereign Funds Perspective", published jointly in Revue Analyse
Financière, Q4 2011 issue, pp. 34–37 and USAK/JTW July 30, 2011 (online edition)
12
Hayes, Brian (2005). Infrastructure: the book of everything for the industrial landscape (1st ed.). New York: Norton
13
Davila, Tony; Marc J. Epstein and Robert Shelton (2006). Making Innovation Work: How to Manage It, Measure It, and Profit from It. Upper Saddle River: Wharton School Publishing
14
Hughes, B. (2008). "Payers Growing Influence on R&D Decision Making". Nature Reviews Drug Discovery. 7 (11): 876–78

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6. Broad-based growth
Broad-based growth refers to a wide-ranging and multi-barreled approach to economic growth which
allows for all (or as many as possible) sectors of the economy to grow, thrive or to flourish. Broad-based
growth models make countries more inherently stable, dynamic and prosperous – such models may also
increase GDP growth rates, and make economies more recession-proof. Such models must be
contrasted with socialism which interferes with and severely compromises creativity, ingenuity and
efficiency; socialism has failed multiple times all over the world. Let us now go down this dangerous and
error-ridden path once again. Another related concept is bottom up economics or trickle up economics
which can pull hundreds of millions of people out of poverty as opposed to trickle down economics
which barely work. This is akin to sparrows getting something to eat when the horses are fed; such
models are fraught notoriously with uncertainties though many right-wing adherents admittedly do
continue to dogmatically swear by them without remorse or regret.
Developing countries must also develop their own economic models as applicable to suit their own
requirements and conditions; we have written extensively on anthropological economics in the past.
Economic theory has always been Eurocentric; let’s face it. This is because, like theories and concepts in
most other fields of the social sciences, theories in economics were based on the conditions prevalent in
the western world. India has performed admirably in services in the recent past; it has lagged behind in
manufacturing. It has been trying to catch up and make up for lost time with the Make in India scheme
and the production linked incentive scheme. India once boasted of a green revolution. Agriculture has
changed remarkably since then with new concepts such as organic farming, drip irrigation,
permaculture, regenerative agriculture, vertical farming, use of artificial intelligence in agriculture,
drones, robots, polyhouses, and the like. A second agricultural revolution may be imminent and
impending and may happen of its own accord. However, the government would be well-advised to
accelerate and smoothen the process from bumps and roadblocks. The government can indeed make a
difference here with the right kinds of policies and initiatives. Broad-based and diversified economic
models can make economies more resilient and immune from shocks. They will also lead us faster
towards the goals of a multi-polar world.
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7. No ideology and dogma, only pragmatism
We also need no ideology and dogma, only pragmatism. We also need no hubris at the same time; India
has however unfortunately tended to fall into this trap on many occasions. An ideology refers to a set of
beliefs or values attributed to a person or group of persons, especially those held for reasons that are
not purely or chiefly rational. Dogma refers to fixed thinking or rigidity of thought. Left-leaning thinkers,
along with their holy and sacred texts, are being increasingly seen as champions of dogma and ideology,
However, the right, particularly the far right, is not immune and free from ideology and dogma either.
Some sections of the Indian far right harbor an anti-English fetish for example. We need greater
flexibility in the medium of instruction in Indian schools perhaps. We need via media solutions and data
driven solutions always. For example, the Indian far right has also tended to ignore agricultural

15
Durlauf, Steven N.; Blume, Lawrence E., eds. (2008). The New Palgrave Dictionary of Economics (2nd ed.). Palgrave Macmillan
16
McCann, Charles Robert Jr. (2003). The Elgar Dictionary of Economic Quotations. Edward Elgar.

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development and rural development occasionally as it has tended to take a leaf from the western play
book at times. We need no copy paste scholarship; each country needs its own solutions. For example,
blind and mindless privatization of banks in India might not be a good idea. A better solution may be to
improve the profitability and efficiency of government banks, and gradually expand their reach. Let us
also be advised that the banking sectors it the USA is fundamentally and inherently unstable and weak,
and was one of the causes of the Great Depression of 1929. The Indian banking system is one of India’s
greatest strengths, as it even serves the rural population well. Such solutions may also logically emerge
if we improve our education systems, and limit the role of rote learning to situations where it is
required. Such approaches will also lead to pragmatism, vitality and dynamism, and make the nation
more immune to global uncertainties and externalities.
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8. Decentralized administration and competitive federalism
We also need decentralized administration and competitive federalism at any cost and at all times. India
is far more decentralized in its administration and development models that say Sri Lanka. Other
countries and nations may also examine the prospects of implementing such approaches if necessary.
Competitive federalism is also one of India’s chief and greatest strengths. We must let it remain that
way. This also ensures that there is no danger of the negative effects of a bad policy percolating and
permeating throughout the economy and its complex constituents. A single individual may also then not
be able to take control over an entire economy and wreck havoc on it by bludgeoning it to death with a
sledgehammer.
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9. Sound international relations: Make deals with more and more countries
Sound international relations are of paramount importance to usher in a multi polar world order; there
must not be trading blocs as far as possible, but this may only represent a quixotic wishlist for a long
time to come. We foresee the emergence of a large number of economic blocs in the near future, such
as a pan-Africa blocs. India and other countries must make deals with more and more countries, and
trade fairly and competitively with them, each drawing on their own competitive strengths. Countries
must also encourage and promote international trade and globalization in due course, and not succumb
to the perils and follies of autarchy, to the extent at least that their implications are negative. India also
does have a hubristic mind set at times when it deals or trades with other nations, and this is still rather
unfortunately. While nations may trade with other nations, and must trade with as many nations as
possible, they must never compromise their own sovereignty under any circumstances. They must
always promote win win paradigms. The list of trading partners must be gradually greatly expanded, and
the reliance or dependence on one nation alone reduced, as this will constitute a form of risk hedging
and risk diversification. This approach may be continued ad infinitum, even after the change of
governments in any one region or part of the world.

17
Kennedy, Emmet (Jul–Sep 1979). ""Ideology" from Destutt De Tracy to Marx". Journal of the History of Ideas. 40 (3): 353–368
18
Tucker, Robert C (1978). The Marx-Engels Reader, W. W. Norton & Company, p. 3.
19
Usherwood, Simon McDougall; Pinder, John (2018-01-25). The European Union: A very short introduction. Very short introductions (4th ed.). Oxford University Press

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10. Stop the brain drain and encourage overseas citizens to return
Brain drain refers to the loss of highly educated and skilled people from a country, who then migrate or
relocate to greener pastures abroad drawn by better opportunities and higher salaries, and better living
standards. This outflow of talent from developing nations – as it is currently happening in Venezuela,
and once happened in India and other developing nations, and often negatively impact the respective
economies of nations by creating shortages of skilled labor, reducing tax revenue, and hindering
innovation. However, it can boost remittances from abroad in some cases. The exact opposite of brain
drain is reverse brain drain, and this is already happening in some cases. The Indian state of Tamil Nadu
for example, is actively seeking Tamil talent from abroad, and the Indian government to has sought to
make the return of non resident Indians attractive.
There must be full support provided to businesses and other corporate activity. We must also attempt
to incubate startups locally. A large number of startups have been incubated in India and other
developing countries in the recent past, and this is indeed impressive. However, the quality and quantity
of such startups will improve as educational systems improve, and brain drain is reversed. India and
other countries must also allow and invite foreign companies to set up shop locally without any bias and
prejudice. This can be accomplished through attractive schemes, and foreign companies can even be
reincorporated on Indian soil, or in other developing companies. This can also be accomplished through
the setting up of subsidiaries or demerger. The Indian government (and other governments) may also
encourage companies to redomicile to India and encourage reverse flipping. Reverse flipping is a process
by means of which a company domiciled abroad returns to the native country of its founded. These are
relatively new concepts, but governments may come out with clear cut and unambiguous policies in this
regard. This can be a deal maker and deal clincher for many countries, and can greatly globalize trade
and economics.
Foreign talent may also be encouraged by countries, though not unfairly or unethically poached. The
UAE has set a precedent recently by attracting Indian talent into its soil; this may be a template for other
nations as well to follow suit. There are significant risks in India and other developing countries, though.
For example, in India, there is still no capital account convertibility; corporate taxes in India and
elsewhere may still be high, though they have been significantly reduced. There is still too much
bureaucracy and red tape, and its creaking infrastructure is still rather shambolic and poor. The patents,
trademarks and copyrights regime is not fully mature or evolved; we need fresh though and new ideas
everywhere, and away from a Eurocentric mold and compass; research on taxation and other aspects is
still required, particularly in relation to economic growth, wealth creation, government revenue
generation, and employment generation. Some kind of activity based taxation may also take root in
future, though these are just concepts at present. We also need research on social security, welfare, and
other systems, particularly in relation to human fulfillment and the human happiness quotient. Again, as
always, local conditions must be the basis of everything, and new concepts must be generated as
required. We had touched upon some of these concepts in brief in our multiple papers on
anthropological economics, though much more research is indeed required, and must be driven by
researchers in multiple countries.

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Conclusion
The ongoing trade war between the United States and other countries has become the most widely
discussed topic of the year 2025. These tariffs, which were imposed by Trump’s administration, have led
to retaliatory tariffs by a host of other nations, and have led to matching protectionist measures by
other countries around the world. In this paper, we go on to show why the current predicament,
imbroglio and impasse can actually be a blessing for other nations in the long-term as they seek to
leverage their own strengths, not only because protectionist measures have also almost never worked,
but also because the United States currently holds only about four percent of the world’s population. In
this paper, we present a large number of proposals not only for India, but also for other developing
countries, to counter, and make most of a bad situation. Examples of these include strategy, vision, non-
dogma, pragmatism, non-hubris, risk analysis based approaches, a focus and emphasis on foundational
competencies, diversified economic models, bottom up economic models, etc. This paper may appear to
be a digression and a sidestep from our main purposes, but it as a matter of fact may actually be not,
because it furthers the avowed goals of our globalization of movement indirectly. As they say, convert
every crisis into an opportunity.