Trump states US would become ‘third world nation’ without tariffs

(MENAFN) U.S. President Donald Trump has warned that the country could fall into economic decline and become a “third world nation” if his administration’s tariffs are overturned, following a federal appeals court ruling that declared most of them unlawful.

Trump first imposed the tariffs in April, citing unfair trade practices by U.S. partners and calling the move a reciprocal effort to secure better trade deals. The tariffs, ranging from 10% to 41% depending on the country, officially took effect on August 7.

However, on Friday, the U.S. Court of Appeals for the Federal Circuit ruled that Trump had overstepped his authority by imposing the tariffs using an emergency-powers statute, which, according to the court, only Congress is authorized to use for such measures. While the court stopped short of immediately revoking the tariffs, it gave the administration until mid-October to appeal to the Supreme Court.

Reacting to the decision, Trump took to Truth Social, warning of serious economic consequences if the court’s ruling is upheld. “More than $15 trillion will be invested in the USA — a record. Much of this investment is because of tariffs,” he wrote. “If a radical left court is allowed to terminate these tariffs, nearly all of this investment will be lost! We would become a Third World Nation, with no path to greatness again.”

The ruling impacts two major sets of tariffs: general “reciprocal” tariffs on many trade partners, and those imposed on Canada, China, and Mexico tied to allegations of drug trafficking. It does not apply to other targeted tariffs—such as those on steel, aluminum, and automobiles—implemented under different legal provisions.

Trump has consistently defended his tariff strategy as a way to boost domestic manufacturing, reduce trade deficits, and strengthen the economy. Critics, including many economists and lawmakers, argue the tariffs could damage the economy and potentially lead to a recession.

While Russia has not been subjected to tariffs due to existing sanctions, Trump has threatened punitive tariffs on countries trading with Moscow unless the Ukraine conflict is resolved. Last month, he doubled tariffs on Indian goods to 50%, accusing India of aiding Russia by purchasing its oil, and hinted at new tariffs on Chinese products.

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