design assessments in the age of AI
How tariffs slow an economy (the simple mechanics) Higher import prices → weaker demand. Tariffs raise the cost of imported inputs and final goods. Companies either pay more for raw materials and intermediate goods (squeezing margins) or pass costs to consumers (reducing purchasing power). That combRead more
How tariffs slow an economy (the simple mechanics)
- Higher import prices → weaker demand. Tariffs raise the cost of imported inputs and final goods. Companies either pay more for raw materials and intermediate goods (squeezing margins) or pass costs to consumers (reducing purchasing power). That combination cools consumption and industrial activity.
- Supply-chain disruption & re-shoring costs. Firms respond by reconfiguring supply chains (finding new suppliers, on-shoring, or stockpiling). Those adjustments are expensive and slow to pay off — in the near term they reduce investment and efficiency.
- Investment chill from uncertainty. The prospect of escalating or unpredictable tariffs raises policy uncertainty. Businesses delay or scale back capital projects until trade policy stabilizes.
- Retaliation and cascading barriers. Tariffs often trigger retaliatory measures. When many countries raise barriers, global trade volumes fall, which hits export-dependent economies and global value chains.
These channels are exactly why multilateral agencies and market analysts say tariffs and trade restrictions can lower growth even when headline GDP still looks “resilient.”
What the major institutions say (quick reality check)
- The IMF’s recent updates show modest global growth in 2025–26 but flag tariff-driven uncertainty as a downside risk. Their 2025 WEO update projects global growth near 3.0% for 2025 and 3.1% for 2026 while explicitly warning that higher tariffs and policy uncertainty are important risks.
- The OECD and several analysts argue the full force of recent tariff shocks hasn’t been felt yet — and they project growth weakening in 2026 as front-loading of imports ahead of tariffs wears off and higher effective tariff rates bite. The OECD’s interim outlook expects a slowdown in 2026 tied to these effects.
- The WTO and World Bank also report trade-volume weakness and flag trade barriers as a material drag on trade growth — which feeds into lower global GDP.
- These institutions are not predicting a single global recession just from tariffs, but they do expect measurable downward pressure on trade and investment, which slows recovery momentum.
How big could the hit be? (it depends — but here are the drivers)
Magnitude depends on policy breadth and persistence. Small, narrow tariffs on a few goods will only nudge growth; widespread, high tariffs across major economies (or sustained tit-for-tat escalation) can shave sizable tenths of a percentage point off global growth. Analysts point out that front-loading (firms buying ahead of tariff implementation) can temporarily buoy trade, but once that fades the negative effects appear.
Timing matters. If tariffs are announced and then held in place for years, businesses will invest in duplicative capacity and the re-allocation costs accumulate. That’s the scenario most likely to slow growth into 2026.
Bloomberg
Who loses most
- Export-dependent emerging markets (small open economies and commodity exporters) suffer when demand falls in advanced markets or when their inputs become more expensive.
- Complex-value-chain industries (autos, electronics, semiconductors) where components cross borders many times are particularly vulnerable to tariffs and retaliations.
- Low-income countries feel second-round effects: slower global growth → weaker commodity prices → less fiscal space and elevated debt stress. The World Bank notes growth downgrades when trade restrictions rise.
World Bank
Knock-on effects for inflation and policy
Tariffs can be inflationary (higher import prices), which puts central banks in a bind: tighten to fight inflation and risk choking off growth, or tolerate higher inflation and risk de-anchored expectations. Either choice complicates recovery and could reduce real incomes and investment. Several policymakers have voiced concern that the mix of tariffs plus high policy uncertainty creates a stagflation-like risk in vulnerable economies.
Offsets and reasons the slowdown may be limited
- Front-loading and substitution. Businesses sometimes build inventories or substitute suppliers — that mutes immediate trade declines. IMF and other agencies note that some front-loading actually supported 2024–2025 trade figures, but this effect runs out.
- Fiscal and monetary support. Governments can cushion the blow with targeted fiscal spending, subsidies, or trade facilitation. But those measures have limits (fiscal space, political will) and can’t fully replace cross-border trade flows.
- Near-term resilience in consumption. Private sectors in some major economies have remained resilient, which helps growth hold up even as trade cools. But resilience erodes if tariffs persist and investment dries up.
Reuters
Practical indicators to watch in 2025–26 (what will tell us the story)
- Trade volumes (WTO merchandise trade stats): a sustained drop signals broad tariff damage.
- Business investment and capex plans: continued delays or cancellations point to a deeper investment chill.
- Manufacturing PMI and global supply-chain bottlenecks: weakening PMIs across manufacturing hubs show cascading effects.
- Inflation vs. growth trade-offs and central bank minutes: whether monetary policy tightens in response to tariff-driven inflation.
- Announcements of trade retaliation or new tariff rounds: escalation increases downside risk; diplomatic rollbacks reduce it.
Bottom line — a human takeaway
Tariffs won’t necessarily cause an immediate, synchronized global recession in 2026, but they are a clear and credible downside risk to the fragile recovery. They act like a slow-moving tax on trade: higher costs, muddled investment decisions, and weaker demand — combined effects that shave growth and worsen inequalities between export-dependent and more closed economies. Policymakers can limit the damage with diplomacy, targeted support for affected industries and countries, and clear timelines — but if protectionism persists or escalates, the global recovery will be noticeably weaker in 2026 than it might otherwise have been.
If you want, I can:
• Turn this into a one-page slide for a briefing (executive summary + 3 charts of trade volume, investment plans, and projected growth scenarios); or
• Pull the most recent WTO/OECD/IMF bullets (with dates and one-sentence takeaways) to cite in a short memo.
How to Design Tests in the Age of AI In this era of learning, everything has changed — not only the manner in which students learn but also the manner in which they prove that they have learned. Students today employ tools such as ChatGPT, Grammarly, or math solution AI tools as an integral part ofRead more
How to Design Tests in the Age of AI
In this era of learning, everything has changed — not only the manner in which students learn but also the manner in which they prove that they have learned. Students today employ tools such as ChatGPT, Grammarly, or math solution AI tools as an integral part of their daily chores. While technology enables learning, it also renders the conventional models of assessment through memorization, essays, or homework monotonous.
So the challenge that educators today are facing is:
How do we create fair, substantial, and authentic tests in a world where AI can spew up “perfect” answers in seconds?
The solution isn’t to prohibit AI — it’s to redefine the assessment process itself. Let’s start on how.
1. Redefining What We’re Assessing
For generations, education has questioned students about what they know — formulas, facts, definitions. But machines can memorize anything at the blink of an eye, so tests based on memorization are becoming increasingly irrelevant.
In the AI era, we must test what AI does not do well:
Attempt replacing the following questions: Rather than asking “Explain causes of World War I,” ask “If AI composed an essay on WWI causes, how would you analyze its argument or position?”
This shifts the attention away from memorization.
2. Creating “AI-Resilient” Tests
An AI-resilient assessment is one where even if a student uses AI, the tool can’t fully answer the question — because the task requires human judgment, personal context, or live reasoning.
Here are a few effective formats:
Have students record how they utilized AI tools ethically (e.g., “I used AI to grammar-check but wrote the analysis myself”).
Choose students for the competition based on how many tasks they have been able to accomplish.
Example: “You are an instructor in a heterogeneously structured class. How do you use AI in helping learners of various backgrounds without infusing bias?”
Thinking activities:
Instruct students to compare or criticize AI responses with their own ideas. This compels students to think about thinking — an important metacognition activity.
3. Designing Tests “AI-Inclusive” Not “AI-Proof”
it’s a futile exercise trying to make everything “AI-proof.” Students will always find new methods of using the tools. What needs to happen instead is that tests need to accept AI as part of the process.
Mark not only the result, but their thought process as well: Have students discuss why they accepted or rejected AI suggestions.
Example prompt:
This makes AI a study buddy, and not a cheat code.
4. Immersing Technology with Human Touch
Teachers should not be driven away from students by AI — but drawn closer by making assessment more human-friendly and participatory.
Ideas:
Human element: A student may use AI to redo his report, but a live presentation tells him how deep he really is.
5. Justice and Integrity
Academic integrity in the age of AI is novel. Cheating isn’t plagiarizing anymore but using crutches too much without comprehending them.
Teachers can promote equity by:
Employing AI-detecting software responsibly — not to sanction, but to encourage an open discussion.
It builds trust, not fear, and shows teachers care more about effort and integrity than being great.
6. Remixing Feedback in the AI Era
Example: Instead of a “AI plagiarism detected” alert, give a “Let’s discuss how you can responsibly use AI to enhance your writing instead of replacing it.” message.
7. From Testing to Learning
The most powerful change can be this one:
AI eliminates the myth that tests are the sole measure of demonstrating what is learned. Tests, instead, become an act of self-discovery and learning skills.
Teachers can:
Final Thought
Not to be smarter than AI. To make students smarter, more moral, and more human in a world of AI.
See less