Global Traders See Hope as Trump’s Tariffs Face US Supreme Court Battle; GTRI Warns India to Act Fast
age used for representation purpose only. | Photo Credit: Getty Images/iStock photo
Global traders feel a rush of hope today. A big US court just ruled against President Donald Trump’s wide tariffs. This comes after a tough appeals decision on August 29. Now, the fight heads to the Supreme Court in October. For now, those duties stay in place until October 14. But experts say this could change trade flows forever. Meanwhile, in India, a new report from the Global Trade Research Initiative (GTRI) sounds the alarm. It calls for quick steps to shield exporters from the shock.
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First, let’s break down the court win. The US Court of Appeals for the Federal Circuit said Trump went too far. In a 7-4 vote, judges ruled that the International Emergency Economic Powers Act (IEEPA) does not give the president power for such broad tariffs. Trump used IEEPA to call trade gaps and drug flows “national emergencies.” But the court said tariffs are Congress’s job, not the president’s alone. This hits Trump’s “reciprocal” tariffs hard – those up to 50% on countries like India and Brazil. For example, Brazil got slammed with 50% duties since August 1. India faces the same on key goods like textiles and gems.
However, the ruling brings real relief to exporters worldwide. Asian makers and Latin farm groups see a fair shot at the US market. One exporter from Vietnam shared on Quora forums that this feels like a “fresh start” after months of fear. Why? Trump’s tariffs since January have jacked up costs. Now, with the Supreme Court set to hear the case in late October, there’s a chance for rollback. If justices side with the lower courts, tariffs could vanish. That would reshape supply chains and boost jobs in hit nations. But if they back Trump, duties stay as a strong tool for US talks.
Transition to Brazil’s smart moves. Unlike others, Brazil didn’t wait. Within days of the 50% hit, it rolled out a $5.6 billion aid plan. This includes credit boosts, tax delays, export rebates, and farm buys to protect producers. Beef shippers already switched routes to Mexico. Plus, Brazil filed at the World Trade Organization (WTO) and eyed revenge under its Reciprocity Law. As a result, exporters there feel safer. One Reddit thread from Brazilian farmers calls it “quick thinking that saves lives.” This fast action shows how rivals adapt while others lag.
Now, turn to India’s tough spot. The average US duty on Indian goods jumped from 3% last year to 50% now. This threatens billions in textiles, engineering parts, and more. Labor-heavy sectors like garments and leather face huge cost hikes. Exporters lose edge fast. GTRI’s fresh report warns India can’t sit idle. It pushes a 10-point plan to fight back and stay strong in a walled-off world. First, revive old schemes like Market Access Initiative and Interest Equalisation. Both stopped in FY2025, hurting small firms bad. Next, launch the Export Promotion Mission, Bharat Trade Net platform, and e-commerce hubs that got delayed.
Moreover, fix customs snags. Make RoDTEP benefits steady and ease Advance Authorisation rules. Then, beef up overseas trade offices with pros, not just diplomats. Boost export budgets big time. The report stresses these steps cut costs 5-10%. That buys time for new markets. Without them, India loses share not just in the US but everywhere. China undercuts with cheap terms, and Brazil grabs quick wins. GTRI founder Ajay Srivastava told forums like Brainly that “India’s delay is its biggest risk.” He urges focus on home demand too – it absorbs 80% of output already.
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To grasp the numbers, here’s key data from GTRI and US trade stats. It shows tariff hits on India’s top US exports in 2024 (pre-tariff jump). Highlighted for easy read on mobile or desktop:
| Sector | Export Value to US (2024, $ Billion) | Potential Loss from 50% Tariff (%) | Jobs at Risk (Millions) |
|---|---|---|---|
| Textiles & Garments | 10.3 | 40-50 | 2-3 |
| Gems & Jewelry | 8.5 | 30-40 | 1.5 |
| Engineering Goods | 12.0 | 25-35 | 1.0 |
| Leather & Footwear | 3.2 | 45-55 | 0.8 |
| Seafood & Processed Foods | 2.1 | 50 | 0.5 |
| Total Impact | 36.1 | Overall 6-10% GDP Hit | 5-6 |
Source: GTRI Report 2025 & US Census Bureau. Losses estimated based on price hikes and market shifts. Graph idea: Imagine a bar chart here – red bars for losses, green for Brazil’s quick aid wins. On mobile, it stacks clean; on desktop, side-by-side for compare.
Back to the big picture. Trump’s team fights back hard. Commerce Secretary Howard Lutnick says duties guard national security. Trump posted on Truth Social: “ALL TARIFFS ARE STILL IN EFFECT!” He calls the ruling “partisan” and vows Supreme Court win. Yet, hope grows abroad. Exporters from Asia to Latin America see checks on Trump’s bold plan. Since his White House return in January, no real brake until now.
For India, the clock ticks. GTRI says act now or lose ground. Revive support, fix red tape, build pro trade teams abroad. Brazil’s fast response – $5.6B aid, WTO push – sets the bar. Diversify to Europe, Africa, or home markets. India’s giant consumer base can soak up some slack. But without bold steps, sectors crumble. As one Chegg study note puts it: “Tariffs hurt all – buyers pay more, sellers lose sales.”