New Delhi: US President Donald Trump has approached the Supreme Court contesting a federal appeals court’s decision that the President does not have the authority to unilaterally impose broad tariffs on imports In his appeal, Trump defended the sweeping duties placed on India, arguing they were an essential element of his push to halt the Russia-Ukraine conflict.
“The President recently authorised IEEPA tariffs against India for purchasing Russian energy products, to deal with a preexisting national emergency regarding Russia’s war in Ukraine, as a crucial aspect of his push for peace in that war-torn country,” the appeal stated.
Ruling clouds trade talks
It further noted, “The Federal Circuit did not question that those crises constitute “unusual and extraordinary threat[s]” to “national security, foreign policy, or [the US] economy” sufficient to trigger the President’s emergency powers under IEEPA. 50 USC 1701(a).”
According to the filing, the ruling “casts a pall of uncertainty upon ongoing foreign negotiations that the President has been pursuing through tariffs over the past five months, jeopardasing both already negotiated framework deals and ongoing negotiations.”
Trump also warned that a defeat could force the US to undo trade arrangements with key partners. “We made a deal with the European Union where they’re paying us almost a trillion dollars. And you know what? They’re happy. It’s done. These deals are all done,” he said. “I guess we’d have to unwind them.”
He added, “Our country has a chance to be unbelievably rich again. It could also be unbelievably poor again. If we don’t win that case, our country is going to suffer so greatly, so greatly.”
An attorney representing small businesses hit by the tariffs, Jeffrey Schwab of the Liberty Justice Center, said the measures were deeply damaging. “These unlawful tariffs are inflicting serious harm on small businesses and jeopardising their survival. We hope for a prompt resolution of this case for our clients,” he said.
Court limits tariff powers
The federal circuit court in Washington had earlier struck down Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to levy such tariffs. In its 7-4 judgment, the court ruled, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties or the like, or the power to tax,” Reuters quoted.
The ruling applied to Trump’s “reciprocal” tariffs announced in April as well as duties imposed in February against China, Canada and Mexico, but left unaffected other trade restrictions introduced under different laws, including those targeting steel and aluminum imports.