An American court against President Donald Trump’s broad tariff has also re -given Asha among global exporters of fair access to the US market as a war in the Supreme Court in October. For India, however, the decision has also highlighted an important vulnerability – a lack of a consistent reaction to tariff shock.
In the 7-4 judgment on August 29, the US Court of Appeals ruled for the Federal Circuit that Mr. Trump had exceeded its authority under the International Emergency Economic Power Act (IEEPA), which had declared the trade deficit and Fentanile inflow as a “national emergency”. The judges confirmed that the tariff powers lie with the Congress and not with the President.
While duties – up to 50% on imports from India and Brazil – remained in force till 14 October, the Supreme Court is expected to take the case after that month. The result can determine whether the tariff regime of Shri Trump survives or falls, in this process the global trade flows again.
Hope to increase abroad
Look at the court’s verdict on Mr. Trump’s aggressive tariff strategy since returning to the White House seven months ago from exporters, Asian manufacturers worldwide, from Latin American agrarian business.
Brazil responded rapidly while facing the same 50% tariff from 1 August. Within days, it launched a credit support program of $ 5.6 billion, postponed taxes, promoted export discounts, and began buying agricultural goods to mold producers. By the end of August, Brazilian beef exporters had already removed shipments in Mexico, while the government went to the WTO and threatened retaliatory duties under its mutual law.
In contrast, India has not yet declared targeted relief. This has left its exporters-especially in labor-intensive areas such as clothing, leather and engineering goods-are struggling with sudden cost growth and shrinking competition.
Trump’s disregard
Mr. Trump, for his share, has made it clear that he will not back down. “All tariffs are still in effect!” After the court’s decision, he wrote on Truth Social, called it “highly biased”. He warned that removing the tariff would “literally destroy the United States,” insisted that they were important to protect American manufacturers and farmers.
The administration has argued that the US foreign policy would be weakened by topping the tariff, the ongoing conversation will be reduced and retaliation will be invited. Commerce Secretary Howard Lutnik said that duties were part of a comprehensive strategy to protect national security.
India’s dilemma
Tariff has specially exposed India. From an average US duty of about 3% a year ago, Indian exports now face 50% of prohibitive obstacles, which endanger billions of goods ranging from textiles to engineering components.
A new report by Global Trade Research Initiative (GTRI) warns that India cannot wait for the Supreme Court result in Washington. It urges New Delhi to immediately prepare a 10-point action plan to mold exporters and rebuild competition in a conservationist world.
Between proposals
A scheme like Market Access Initiative and Interest Equality Scheme was revived, both were suspended in FY 2015, depriving MSMEs with significant support.
Conduct the pending announcements such as the Export Promotion Mission, Bharat Trade Net Digital Platform and long-delayed e-commerce export hub.
Fix structural bottlenecks in customs withdrawal, streamlined rodTap benefits, and simplify the advance authority plan.
Reconstruction of institutions by increasing foreign trade missions professional and by increasing the export promotion budget significantly.
The report emphasizes that without such steps, Indian exporters at the risk of losing market share not only in the US but also globally, as contestants like Brazil quickly adapt to and China reduces prices with long credit conditions.
Supreme court shodown
The US Supreme Court is expected to hear the case in the second half of October, which can become a historic decision on the President’s power. If Justice side, tariffs can collapse with lower courts, then give a vengeance to India and other countries. If they retain the use of the expansion of the trump of IEEPA, tariffs may remain entangled as a tool of executive geo -politics.
For now, Asha is critical. Exporters remain cumbersome with high duties and disrupted supply chains. Diversity away from the US is not easy: major global retailers require years of compliance before transferring orders, and lack of scale to absorb large versions in many emerging markets.
A narrow window
Still optimism is increasing. The court’s verdict has indicated that the American trading system could return to legal prediction rather than the action of the President unilaterally. For global traders, that is a glimpse of relief itself.
For India, however, the ruling is a warning. Unlike Brazil, it is yet to move decisively. The GTRI scheme suggests that by cutting 5–10% of export costs through revived schemes, streamlined procedures and extended funds, India can buy time for gradual diversification and avoid permanent damage.
As the world looks forward to the Supreme Court’s performance in October, exporters see a way opening. Does India confiscate it-or the flat-foot-will decide whether Hope translates into recovery or not.
This article is published in a system 5WH,
Published – August 30, 2025 04:11 pm IST
