Trump Warns of ‘1929-Style Depression’ Amid Tariff Court Battle

August 8, 2025 MTIMES 41 Views global trade news, Great Depression risk, India US trade, Indian Exports to US, Trump economic policy, Trump tariff warning, US import duties, US Tariffs 2025 3 min read

US President Donald Trump on Friday issued a stark Trump tariff warning, claiming that any court ruling against his trade policies could trigger a “1929-style Great Depression.” He asserted that his tariffs were fueling record stock market gains and bringing “hundreds of billions of dollars” into the country’s coffers.

In a lengthy online post, Trump argued that tariffs had a “huge positive impact” on the economy, with “new records set almost every day.” He cautioned that if a “Radical Left Court” struck down his measures, it would be “impossible to ever recover” and would erase America’s “wealth, strength, and power.” Trump insisted the courts should have ruled earlier if they intended to intervene, warning that a negative verdict now would cost the US its “chance at greatness.”

Trump Tariff Warning Comes as New Trade Rates Hit India and Others

The latest tariffs, which took effect Thursday, impact imports from over 60 countries and the European Union. India now faces an additional 25% duty on certain goods due to its purchases of Russian oil, bringing the total tariff rate to 50%. Exporters warn this could hit 55% of India’s outbound shipments to the US and strain long-standing trade ties.

SC Ralhan, president of the Federation of Indian Export Organizations, told the Associated Press that absorbing the sudden cost hike was “not viable” due to already thin profit margins.

Imports from the EU, Japan, and South Korea now face 15% tariffs, while goods from Taiwan, Vietnam, and Bangladesh are taxed at 20%. The US also imposed 100% tariffs on computer chips and increased duties on pharmaceuticals.

Economists Caution Over Long-Term Impact of Trump Tariff Warning

While Trump predicts “unprecedented” economic growth from his policies, economists point to slowing hiring, rising inflation, and declining home prices since the initial rollout in April. Germany’s industrial output fell 1.9% in June, and Switzerland failed to avoid a 39% tariff on its exports.

Global markets have so far stayed resilient — the S&P 500 has risen over 25% since April — but analysts warn that the negative effects of the tariff hikes may take time to materialize.

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