In addition, Indian migrants were handcuffed and flown to India in military aircraft – an act against which the Indian foreign ministry “strongly registered” its concern. In using inappropriate language and implementing strong-arm actions, Trump certainly left Hoover far behind.
While imposing tariffs on Liberation Day, Trump naively ignored the fact that global value chains now dominate manufacturing. When he imposed tariffs on steel and aluminum in his first term, US downstream industries suffered significantly, resulting in a loss of $3.5 billion in 2021. There was no evidence that US manufacturers were ‘relocating’ their units after the 2025 tariffs. US manufacturing spending actually fell by 21 percent by mid-2024, reducing industrial output; if there was any growth, it was mostly in AI data centers and power infrastructure.
The 2018-19 tariff hikes had resulted in a series of retaliatory duties, with US agriculture bearing the brunt. From mid-2018 to the end of 2019, agricultural exports fell by $27 billion, with China accounting for 95 percent of the loss in export value. The Penn Wharton Budget Model estimates that the Emancipation Day tariffs will reduce long-run GDP by 6 percent and reduce U.S. wages by 5 percent. According to this study, a middle-income family would face a lifetime loss of $22,000.
Furthermore, the 2025 tariffs fueled inflation and poverty. Because tariffs act as indirect taxes that reduce the real purchasing power of households, they drive the cost of living significantly higher. The Budget Lab estimated that the 2025 tariffs alone would increase the number of Americans living in poverty from 6.5 lakh to 8.75 lakh, including up to 3.75 lakh children.
Fortunately, the US Supreme Court, in Anti-Trump Learning Resourcesstruck down tariffs imposed under the International Emergency Economic Powers Act, ruling that the statute did not authorize the President to impose tariffs unilaterally. That angered Trump, who invoked Section 122 of the Trade Act of 1974 and imposed 10 percent tariffs to evaluate in all countries.
The US Court of International Trade dismissed the action, but the tariffs continue to be collected based on a ruling by the US Court of Appeals for the Federal Circuit. However, these tariffs can only stay in place for 150 days, until July 24. He has also initiated Section 301 actions, but this can only be used for individual charges and involves a lengthy process.
