Tariffs, AI, and global shifts: Dr. Linda Yueh on trade and tech

Dr. Linda Yueh, Adjunct Professor of Economics at London Business School, joined SiriusXM’s Business Briefing with Janet Alvarez to unpack a week of complex developments in trade, technology, and geopolitics. From the US Supreme Court’s impending ruling on emergency tariffs to the rapid evolution of generative AI and the growing reach of secondary sanctions, Yueh offered a panoramic yet grounded analysis of a world economy in flux.

The Supreme Court and the tariff tug-of-war

The upcoming Supreme Court ruling on presidential powers to impose emergency tariffs could reshape the balance between Congress and the White House, Yueh explained.

“These reciprocal tariffs imposed across more than 150 countries may exceed the powers granted to the president under the 1977 emergency law,” she noted. “If the Court sides with lower rulings, Congress could reclaim some of those delegated powers.”

The stakes are high not just constitutionally, but economically. “We’re already seeing double-digit pass-through of these import taxes into consumer goods,” Yueh said. “That’s inflationary pressure, and with midterms on the horizon, it could nudge Congress to step in and stabilise policy.”

Still, markets remain calm. “The administration retains the Section 232 tariffs, covering steel, aluminium, copper, and more, which aren’t under legal challenge,” Yueh observed. “Even after a trade deal, the UK discovered 400 of its exports were still caught under those tariffs. It shows how sweeping the measures are when tied to national security.”

Are tariffs working?

Asked whether tariffs have achieved their intended goals, Yueh was measured. “In some respects, yes, India and Vietnam, for example, have opened markets and reduced barriers to US trade,” she said. “But the speed and unpredictability of tariff changes create uncertainty that can offset those gains.”

The administration’s broader agenda, she argued, is more about leverage than trade in the narrow sense. “It’s about fairness narratives, showing action, bringing partners to the table, and, not least, raising some revenue. Tariffs now bring in over $50bn, though in fiscal terms that’s a drop in the ocean.”

AI and the 'return of the tech sales engineer'

Turning to technology, Yueh highlighted a development that has excited economists and technologists alike: the rise of “forward deployment engineers” at leading AI firms such as OpenAI and Anthropic.

“These engineers help client companies actually integrate AI into their systems, accelerating adoption,” she said. “It’s not just about demos anymore; it’s about embedding expertise directly.”

Yueh drew a historical parallel with the late 1990s. “Back then, Cisco and Microsoft didn’t just sell software, they showed firms how to use it. That period saw real productivity growth, rising incomes, and the first internet boom. AI companies are rediscovering that playbook.”

It’s an optimistic sign, she suggested. “If they succeed, we might see another burst of productivity-led growth, a new ‘dot-com era’ without, hopefully, the same kind of bust.”

Sanctions and the India question

The conversation closed with the resurgence of secondary sanctions, a powerful but, some argue, a blunt economic tool.

“The US has imposed a 50 per cent tariff on Indian goods as part of efforts to deter purchases of Russian oil,” Yueh explained. “In just one month, Indian exports to the US fell 20 per cent, and 40 per cent over the last four months. It’s a clear signal that Washington is prepared to use economic pressure even on partners.”

Yueh drew comparisons with sanctions used against Iran a decade ago. “Then, secondary sanctions, forcing countries to choose between trading with Iran or using the US dollar, eventually brought Tehran to nuclear talks,” she said. “But these tools carry huge uncertainty: who’s affected, how far enforcement extends, and whether allies like the UK, with its dominant maritime insurance sector, could be next.”

A fragile but adaptive global economy

For Yueh, the threads connecting tariffs, AI, and sanctions are the same: power, adaptation, and uncertainty. “From Washington to Wall Street, from Delhi to Silicon Valley, every actor is learning how to navigate a system being rewritten in real time,” she reflected.

“Economic tools are no longer just about economics, they’re instruments of strategy, influence, and technological race. The challenge now is whether global markets can keep adapting as quickly as policymakers act.”

Dr. Linda Yueh is Adjunct Professor of Economics at London Business School and a leading commentator on global economics and policy. Dr Linda Yueh is the author of many books on economics including The Great Economists and The Great Crashes.

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