Trump moves SC, links India tariffs to ending Ukraine war
What's the story
The United States government has appealed to the Supreme Court against a federal appeals court ruling that deemed many of President Donald Trump's tariffs illegal. The Trump administration argues that these tariffs are vital for peace efforts in Ukraine. "The President recently authorized IEEPA tariffs against India for purchasing Russian energy products...as a crucial aspect of his push for peace," the administration said.
Tariff details
'America is now a strong, financially viable nation'
On August 27, the US had doubled tariffs on India to 50%. Half of these were imposed for increasing Russian oil imports after Russia invaded Ukraine. The other half was part of Trump's "America First" policy to reduce trade deficits. The administration's court filing said without these tariffs, the US would be a "poor nation," adding that America is now "a strong, financially viable, and respected country again."
Court ruling
US appeals court ruled Trump's tariffs illegal
Last week, a US appeals court ruled that many of Trump's tariffs were illegal but allowed them to remain in place until mid-October for further review. The 7-4 ruling by the US Court of Appeals for the Federal Circuit found that Trump had overstepped his authority by using emergency economic powers to impose these tariffs. In response, Trump criticized the ruling on Truth Social and vowed to fight back with Supreme Court assistance.
Economic impact
Stakes 'could not be higher': Trump administration
The US government has argued that removing these tariffs would expose America to trade retaliation and weaken its ability to secure peace abroad. Solicitor General John Sauer said the stakes "could not be higher" in this case. The administration warned that rolling back tariffs would weaken America's defense-industrial base and jeopardize $1.2 trillion in annual trade deficits.
Argument
Tariff revenue reached $159 billion
Trump has used the tariffs to pressure the European Union, Japan, and other countries into accepting new trade agreements. Tariff revenue reached $159 billion by late August, more than double the amount from the same period last year. Most judges in the Court of Appeals for the Federal Circuit argue that the IEEPA did not allow Trump to usurp congressional authority to set tariffs. The dissenters, however, argue that the statute does empower the president to regulate imports during emergencies.
Ongoing discussions
India says trade negotiations ongoing
India has said that trade negotiations are still ongoing. Commerce Minister Piyush Goyal recently said talks with Washington are on to resolve differences and expressed hope for a bilateral trade agreement by November. Prime Minister Narendra Modi, meanwhile, stressed India's focus on domestic priorities, especially farmers' interests. "India will never compromise on the interests of farmers, fishermen, and dairy farmers," he said.