Trump slams court, warns US will become ‘third world country’
August 12, 2026
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Home World North America USA

Trump slams court, warns US will become ‘third world country’ after tariff ruling; Indian visitors fall 8 per cent

US President Donald Trump has lashed out at a federal court ruling that declared his tariff policy illegal, warning of economic collapse. Meanwhile, new data shows a sharp decline in international visitors to the U.S., including an 8 per cent drop from India

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Sep 1, 2025, 05:00 pm IST
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Court ruling on tariffs sparks Trump’s warning of economic ruin as U.S. faces declining global travel demand

Court ruling on tariffs sparks Trump’s warning of economic ruin as U.S. faces declining global travel demand

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US President Donald Trump has strongly criticised a federal court ruling that declared additional tariffs imposed by his administration on various countries illegal. Trump warned that repealing these tariffs would turn the United States into a “third world country” and wipe out $15 trillion in investment. He also branded the court as “radical leftist.”

Trump warned that lifting the tariffs would lead to a massive economic downturn, claiming the United States could “become a third world country” and lose as much as $15 trillion in planned investments. He argued that most of these investments were linked to the tariff policies and predicted they would “disappear immediately” if the duties were repealed. The president shared these concerns on his social media platform, Truth Social.

The US Court of Appeals for the Federal Circuit ruled yesterday that most of the tariffs announced by Trump under the International Emergency Economic Powers Act (IEEPA) were illegal and an abuse of presidential authority. The decision upheld a lower court’s earlier ruling in May, which had concluded that the tariffs were imposed without proper legal authority.

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Although the appeals court affirmed that position, it has temporarily stayed its ruling until October 14, allowing the government time to appeal to the Supreme Court.

According to the court, the US Congress does not grant the president the authority to impose such tariffs. In the judgment, all seven judges on the US Court of Appeals for the Federal Circuit agreed that Trump’s tariffs constituted an abuse of power, while four judges dissented in favor of the president’s actions.

Meanwhile, the U.S. Treasury has collected $159 billion in tariff revenue as of June, double the amount collected during the same month last year. If this amount must be refunded, analysts warn that the U.S. could face a financial crisis. In addition, many countries that pledged investments under the pressure of tariffs may cancel their commitments if the duties are removed.

Drop in Indian Visitors to the US

In a related development, the number of Indians traveling to the United States for the first time has dropped significantly since 2001. In June 2025, 210,000 Indians visited the U.S., compared to 230,000 during the same period last year, an 8 percent decline, according to data released by the US Department of Commerce’s National Travel and Tourism Office (NTTO).

The report also notes that overall international travel to the U.S. has slowed down, reflecting a global trend. Compared to July 2024, visitor numbers fell by 5.5 percent this year. Monthly figures show that arrivals declined by 6.2 percent in June, 7 percent in May, 8 percent in March, and 1.9 percent in February. Only January and April registered increases of 4.7 percent and 1.3 percent, respectively.

India remains the fourth-largest source of international visitors to the U.S. Excluding neighboring countries Mexico and Canada, India ranks second only to the U.K. in visitor numbers, followed by Brazil. These five countries together accounted for nearly 60 percent of international tourist arrivals to the U.S. in June.

Traditionally, Indian visitors include students, business travelers, and people visiting friends and relatives. The current slowdown is most evident among students. Experts caution that continued visa delays and restrictions could further impact future visitor numbers.

Topics: International Emergency Economic Powers ActUS Department of Commerce’s National Travel and Tourism OfficeUS President Donald Trump
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