Overview
- President Trump doubled India’s tariff rate to 50% in early August under the International Emergency Economic Powers Act, imposing the highest U.S. import duties since 1933.
- New Delhi denounced the punitive measure as unfair, formally lodged a WTO dispute and secured solidarity pledges from BRICS partners.
- Economists warn the large duties are stoking U.S. consumer price inflation, squeezing profit margins and raising stagflation risks with a roughly 40% chance of recession.
- The Federal Reserve paused planned rate cuts in response to rising price pressures as Congress and federal courts debate curbs on presidential emergency tariff powers.
- President Trump touted record stock market gains and federal revenue inflows from the tariffs and warned that court rulings against them could trigger a “1929-style” depression.