Trump's 'Liberation Day' Tariffs: A Year of Turmoil, Trade Shifts, and Legal Defeat

• US President Donald Trump's 'Liberation Day' tariffs, initiated on April 2, 2025, imposed a 10% blanket duty and higher 'reciprocal' rates on many countries, including India.
• India's exports faced significant impact, with pharmaceuticals initially spared but labor-heavy sectors like textiles and gems hit hard; an additional 25% tariff on Indian goods over Russian oil pushed rates to 50%.
• The Supreme Court ruled in February 2026 that the emergency law behind the tariffs did not authorize them, leading to their collapse.
• Global trade patterns shifted, with US imports from China declining in targeted sectors, while imports from Vietnam, Mexico, and Southeast Asia rose, indicating a 'China+1' model.
• Tariffs did not stay at the border; US importers and consumers bore significant costs, leading to incremental inflation and a decline in manufacturing employment.