The US Court’s judgment against President Donald Trump’s extensive tariffs revived the hope of global exporters of a fairer approach to the US market, although the battle in October moves to the Supreme Court. For India, however, the judgment also revealed critical vulnerability – its lack of cohesive reaction to the tariff shock.
The US Court of Appeal for the Federal District in the decision 7-4 29. August decided that Mr Trump had exceeded his authority under the International Act on Emergency Economic Powers (IEEPA) by declaring Fentanyl’s business deficits and inflow of “national emergencies” to justify wide tariffs. The judges reaffirmed that tariff powers lies with a congress, not with the president.
While duties – up to 50% of India and Brazil imports – remain in force until October 14, the Supreme Court is expected to deal with this case later this month. The result could determine whether Mr. Trump’s tariff regime will survive or collapse, and transform the flows of global trade in this process.
Hope grows abroad
Exporters around the world, from Asian manufacturers to Latin American agriculture, have considered the court’s decision to be the first real control of the aggressive tariff strategy of Mr. Trump since their return to the White House seven months ago.
Brazil, who has been facing the same 50% of tariffs from 1 August, responded quickly. Within a few days, it launched a $ 5.6 billion loan support program, postponed taxes, increased export discounts, and started buying agricultural goods to shield producers. At the end of August, Brazilian beef exporters have already diverted consignments to Mexico, while the government moved to WTO and, according to its reciprocity law, threatened retaliatory duties.
On the other hand, India has to announce targeted relief. This has left its exporters-especially in the sectors of work demanding, such as clothing, leather and engineering goods-with sudden escalating costs and reducing competitiveness.
Defiance
Mr. Trump, in terms of part, explained that he would not retreat. “All tariffs are still valid!” After a court decision he wrote about social truth and called it “highly guerrilla”. He warned that the removal of tariffs “literally destroys the United States”, which insists that they are vital to protect US manufacturers and farmers.
The administration claimed that the intervening of tariffs would weaken American foreign policy, undermined the ongoing negotiations and urged retaliation. Trade Minister Howard Lutnick said that duties are part of a wider strategy to defend national security.
Indian dilemma
The tariffs left India particularly exposed. Of the average US obligation, approximately 3% ago, Indian exports now face unbearable 50% of barriers and endanger textile goods after utilities worth billions of dollars.
The new report of the Global Trade Research Initiative (GTRI) initiative warns that India cannot afford to wait for the result of the Supreme Court in Washington. It calls on a new Delhi to introduce an immediate ten -point action plan that protects the exporter and reconstruction of competitiveness in the protectionist world.
Between proposals
Recognition of stopped schemes, such as the initiative for access access to the market and the level of interest that were suspended in FY2025, and deprived MSMes critical support.
Operationalization of waiting announcements, such as Export support mission, Bharat Trade Digital digital platform and long delayed export hubs of electronic trading.
Repair the structural narrow places in customs clearance, streamline the benefits of Rodtep and simplify the preliminary authorization scheme.
The rebuilding of institutions by professionalization of overseas business missions and significantly increases budgets to support exports.
The report emphasizes that without these steps Indian exporters risk the loss of market share not only in the US, but globally, because competitors like Brazil are quickly adapted and China undermines prices with long credit conditions.
Showdown Supreme Court
The US Supreme Court is expected to hear this case in the second half of October, in what could become a landmark of people’s presidential power. If the judges on the side of the lower courts, the tariffs could collapse, which would give India and other countries to retribution. If they follow Trump’s extensive use of IEEPA, tariffs could remain rooted as a tool for powerful geopolitics.
For now, hope is fragile. Exporters remain burdened with high duties and disturbed supply chains. Diversification outside the US is not easy: the main global retailers require years of proven compliance before moving orders and many developing markets lack a scale to absorb large volumes.
Narrow window
However, optimism is growing. The court’s judgment indicated that the US trading system could return to legal predictability rather than a unilateral presidential action. For global traders, this is a flash of relief.
For India, however, the decision is a warning. Unlike Brazil, he has to move definitely. The GTRi plan suggests that by reducing the export cost of 5-10% through revived schemes, efficient procedures and widespread financing, India could buy time for gradual diversification and prevent permanent damage.
As the world awaits the Supreme Court in October, exporters see the opening of the way. Whether India entertains-or the flat remains, decides whether the hop is reflected in recovery.
This article is published in the Agreement 5wh.
Published – August 30, 2025 14:11 is
