US tells Supreme Court tariffs on India tied to Ukraine war and peace efforts

New York/Washington: The Trump administration has told the US Supreme Court that it imposed tariffs against India for purchasing Russian energy products “to deal with a preexisting national emergency regarding Russia's war in Ukraine” and as a “crucial aspect” of the President's push for peace in the country.

Trump has imposed 25 per cent reciprocal tariffs on India and an additional 25 per cent levies for Delhi's purchases of Russian oil, bringing the total duties to 50 per cent, effective August 27.

Appeal cites IEEPA powers

In a 251-page appeal to the Supreme Court, the administration said that “the President recently authorised IEEPA (International Emergency Economic Powers Act) 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 that “stakes in this case could not be higher. The President and his Cabinet officials have determined that the tariffs are promoting peace and unprecedented economic prosperity, and that the denial of tariff authority would expose our nation to trade retaliation without effective defences and thrust America back to the brink of economic catastrophe.”

Impact on trade partners

According to the administration, due to IEEPA tariffs, six major trading partners and the 27-nation European Union have already entered framework deals with the United States, accepting tariff arrangements recalibrated in America's favour and agreeing to make approximately USD 2 trillion of purchases and investment in the US economy.

Appeals court ruling

Last week, the US Court of Appeals for the Federal Circuit in Washington, in a 7-to-4 ruling, said the sweeping tariffs imposed by Trump on countries around the world are illegal. However, it also gave the administration until October 14 to file a petition for a writ of certiorari in the Supreme Court, which it did on Wednesday.

Tariffs as foreign policy priority

The appeal also cited Treasury Secretary Scott Bessent, who said the tariffs “have been one of the country's top foreign policy priorities for the last several months” and removing them “would lead to dangerous diplomatic embarrassment, expose the US to the risk of retaliation", and “interrupt ongoing negotiations mid-stream, undermining our ability to protect the national security and economic welfare of the American people.”

Referring to the “fractured, 7-4 decision” of the appeals court declaring the use of IEEPA tariffs unlawful, the administration told the court: “That decision casts a pall of uncertainty upon ongoing foreign negotiations that the President has been pursuing through tariffs over the past five months, jeopardising both already-negotiated framework deals and ongoing negotiations.”

India under spotlight

Several officials, including Bessent and trade advisor Peter Navarro, have said India's purchases of Russian oil are financing the Russian war effort in Ukraine.

On Wednesday, Trump said he had put secondary sanctions on India for its purchases of Russian oil, “the largest purchaser outside of China”, and suggested he had not yet done “phase two yet or phase three” yet.

India’s response

India has called the tariffs imposed by the US “unjustified and unreasonable.” New Delhi said that, like any major economy, it will take all neccassary measures to safeguard its national interests and economic security.