In a dramatic turn of events, a U.S. federal court has struck down Donald Trump’s steep import tariffs, calling them unconstitutional and a violation of trade law. The decision is being hailed as a major win for businesses that have long complained of higher costs and global partners who saw the tariffs as unfair barriers.
The ruling zeroed in on Trump’s 2025 executive order that slapped duties of up to 50% on steel, electronics, textiles, and several consumer goods, mostly from Asia. Judges argued that the administration overstepped its powers by bypassing congressional approval. For American companies, especially in manufacturing and retail, the news feels like a sigh of relief — lower input costs may finally be on the horizon.
Thank you for reading this post, don't forget to subscribe!But while Washington sorts out the legal mess, the global economy is already reacting. Investors are reassessing trade flows, and countries that had braced for long-term tariffs are suddenly seeing opportunities reopen.
Interestingly, India has emerged as a surprising winner in this global shuffle. Just weeks before the court’s decision, India stunned analysts by posting a 7.8% GDP growth rate in the April–June 2025 quarter.
The Indian economy, which Trump had mocked as “debt-driven” earlier this year, outperformed projections from the World Bank and the IMF, both of which had pegged growth closer to 6.5%. Instead, India’s GDP surged to ₹47.89 lakh crore, up from ₹44.42 lakh crore in the same quarter of 2024–25.
What drove this? A blend of robust manufacturing, booming services, and strong private consumption. Exports added momentum too, even before tariffs kicked in. Government spending also gave industries a push, while job creation in both rural and urban centers lifted confidence further.
Analysts say this growth pace is the fastest among major economies, especially when compared with sluggish numbers from the U.S. (around 1.6%) and China (barely 2%). Even Japan, despite pledging massive investments in India, is seeing slower domestic expansion.
What Happens Next?
For India, the timing of the U.S. court ruling is critical. A 50% tariff on Indian exports was set to take effect in September. If enforcement weakens following the court’s decision, Indian exporters may dodge a heavy blow — keeping momentum alive for the rest of the year.
On top of that, speculation of a GST cut in early September could further fuel consumer demand in India’s second quarter. If trends hold, economists believe India could remain one of the only large economies consistently posting 7%+ growth.
Meanwhile, American markets are bracing for a tug-of-war. The Biden administration (or whoever steps in next) will need to decide whether to appeal the ruling or accept the rollback. Either way, the ruling reshapes global trade conversations — and for now, India is seizing the spotlight as proof that resilience and domestic demand can outshine political turbulence.
Final Takeaway:
Trump’s tariffs may have been ruled illegal in U.S. courts, but their ripple effects are still being felt. While America debates, India is powering ahead with record growth. It’s a rare twist in global economics the U.S. stepping back, and India stepping up.