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‘US Will Become Third World Nation If…’: Trump Warns After Facing Ban on Tariffs

US President Donald Trump warns US could become a "Third World Nation" after the court strikes down his tariffs, fueling economic and political tensions.

Published By: Neerja Mishra
Last Updated: September 2, 2025 14:01:50 IST

US President Donald Trump has sounded an alarm after a federal court struck down his sweeping tariffs. Trump claimed that if the tariffs are cancelled, the United States will turn into a “Third World country.” 

He defended his trade policies on Truth Social, saying that the tariffs have brought record investment to the country and helped reduce inflation. The ruling has set off a fierce political and economic debate over the future of America’s trade strategy.

Trump Defends Tariffs as Key to Investment

Trump said that more than $15 trillion will flow into the United States because of his tariffs. More than 15 Trillion Dollars will be invested in the USA, a RECORD. Much of this investment is because of Tariffs,” he posted.

He warned that if the tariffs are cancelled, “almost all of this investment, and much more, will be immediately cancelled”, and the US will lose its global standing.

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‘Third World Nation’ Warning

In his fiery posts, Trump warned of dire consequences. “In many ways, we would become a Third World Nation, with no hope of GREATNESS again. TIME IS OF THE ESSENCE!!!” he wrote. He argued that tariffs are not only protecting jobs but also reviving American industries.

Trump’s Claim on Inflation & Prices

Trump insisted that tariffs have not hurt the economy but instead kept prices under control. “Prices are ‘WAY DOWN’ in the USA, with virtually no inflation. Except ridiculous, corrupt politician-approved ‘Windmills,’ which are killing every State and Country that uses them,” he said. He described tariffs as a shield against economic instability.

Court Declares Tariffs ‘Illegal’

On Friday, a federal appeals court ruled 7–4 against Trump’s use of “national emergencies” to impose tariffs on nearly every country. The court said the president had exceeded his powers. However, it allowed the tariffs to remain in place until October 14, giving Trump time to appeal to the Supreme Court.

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Trump quickly hit back, calling the ruling “highly partisan.” “If allowed to stand, this Decision would literally destroy the United States of America,” he wrote.

White House Reacts to Ruling

White House Deputy Press Secretary Kush Desai said the ruling does not immediately cancel the tariffs. “The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter,” he stated.

Revenue & Risks

By July, tariffs had already brought in $159 billion, more than twice as much as the previous year. The Justice Department claims that the US might face ‘financial devastation’ if the tariffs are lifted. The political divide has grown as a result of Trump’s portrayal of tariffs as the cornerstone of American economic.

Larger Battle Over Trade Power

This ruling is more than a legal fight. It raises questions about how much authority a president has over trade. Trump sees tariffs as his key economic weapon, but the courts are drawing limits. The outcome now depends on whether the Supreme Court will back him or restrict his powers further.

ALSO READ: Trump Claims India Offered Zero Tariffs On US Goods Amid Trade Row

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