The president’s trade policy is in jeopardy after an appeals court declared most of his tariffs unlawful
US President Donald Trump has warned that America could became a “third world nation” if his tariffs are scrapped. He made the remarks after a federal appeals court declared most of them unlawful.
Trump launched his tariff drive in April, accusing US trade partners of creating unfair trade imbalances and calling it a reciprocal response to secure better trade terms. Most country-specific rates ranging from 10% to 41% took effect on August 7.
The policy has drawn criticism from US lawmakers over the potential damage to the economy. On Friday, the US Court of Appeals for the Federal Circuit ruled that Trump misused his authority by imposing tariffs under an emergency-powers statute, saying only Congress can authorize these measures. The court stopped short of canceling the tariffs, giving the administration until mid-October to appeal to the Supreme Court.
Trump blasted the ruling, warning of dire consequences if it stands.
“More than 15 Trillion Dollars will be invested in the USA, a RECORD. Much of this investment is because of Tariffs,” he wrote on Truth Social on Monday. “If a Radical Left Court is allowed to terminate these Tariffs, almost all of this investment, and much more, will be immediately cancelled! In many ways, we would become a Third World Nation, with no hope of GREATNESS again.”
The court ruling covers two sets of tariffs: Broad “reciprocal” tariffs on most US trade partners, and tariffs on goods from Canada, China, and Mexico linked to drug trafficking claims. The decision does not affect targeted tariffs, such as those on foreign steel, aluminum, and autos, as they were enacted under separate laws.
Trump has argued that tariffs are good for the economy, presenting them as tools to secure better trade terms, revive manufacturing, and cut deficits. Economists, however, warn that the policy risks pushing the US into recession.
Russia has not been targeted with tariffs due to the existing sanctions, but Trump has threatened higher tariffs on its trade partners if the Ukraine conflict is not resolved. Last month, he doubled tariffs on India to 50%, accusing it of aiding Moscow by buying Russian oil, and hinted at new measures against China.
