• Source:JND
Add as a preferred

In a major setback to President Donald Trump's economic agenda, the US Supreme Court on Friday struck down most of his sweeping tariffs, ruling that he lacked authority under a 1977 emergency law to impose broad import levies on America's trading partners across the world, including India. The ruling marks a rare instance of the conservative-led court reining in Trump's use of executive power.

Meanwhile, Trump said he is “absolutely ashamed” of the US Supreme Court justices, calling their decision “deeply disappointing,” according to a report by the Associated Press.

According to Politico, the court, in a 6-3 decision, struck down the tariffs, describing it as "a major repudiation of a core piece of Trump’s economic programme." The court ruled that Trump’s attempt to invoke the emergency powers law to implement the levies was invalid.

Two out of three of the justices appointed by Trump joined the majority in striking down the first major piece of Trump's second-term agenda to come before them.

ALSO READ: What Are Trump's Options After Supreme Court Strikes Down US President's Global Tariffs? Explained

US Supreme Court Overturns Trump’s Global Tariffs: Key Takeaways

  • Trump said he is “absolutely ashamed” of the U.S. Supreme Court justices, calling their decision “deeply disappointing,” according to a report by the Associated Press.
  • President Trump relied on the 1977 International Emergency Economic Powers Act (IEEPA) as justification for a historic wave of tariffs, despite the law’s lack of mention of tariffs. IEEPA, which allows the president to seize assets and block transactions during a national emergency, was first used during the Iran hostage crisis and has since been invoked in response to global events, including the 9/11 attacks and the Syrian civil war.
  • Trump argued that the US trade deficit was so severe that it constituted an emergency, a claim that was dismissed by the Supreme Court.
  • "The fact that no President has ever found such power in IEEPA is strong evidence that it does not exist," wrote Chief Justice John Roberts, speaking for the majority.
  • The justices observed that the Constitution "very clearly" grants Congress, not the president, the authority to impose taxes, including tariffs.
  • Trump had previously used IEEPA to impose tariffs on America’s three largest trading partners: Mexico, Canada, and China. He justified these tariffs by declaring a national emergency related to undocumented immigration and the trafficking of drugs such as fentanyl and its precursor chemicals.
  • The president also invoked IEEPA to impose steep import taxes on Brazilian goods, citing the country’s prosecution of former President Jair Bolsonaro, and on India due to its purchases of Russian oil.
  • Many of the tariffs Trump imposed under IEEPA have seen fluctuating activity over the past year, with some being lifted, increased, and reintroduced at various points.
  • While the Supreme Court’s decision nullifies many of these tariffs, others imposed by Trump were based on different legal justifications and remain unaffected.
  • Most of America’s trading partners still face high tariffs on specific goods, including steel, aluminium, cars, copper, lumber, kitchen cabinets, bathroom vanities, and upholstered furniture.
  • The court did not specify how the government should refund the estimated 175 billion dollars in illegal tariffs.
  • Indian exporters have welcomed the US Supreme Court’s decision to strike down the tariffs imposed by President Donald Trump, calling it a significant relief for domestic businesses impacted by the country-specific duties.
  • Exporters are now urging the US to remove the 25 per cent reciprocal tariffs on India, arguing that this would mean around 55 per cent of India's exports to the US would only be subject to the existing customs duties. The ruling is seen as restoring greater predictability in bilateral trade between the two nations.
  • “The ruling brings much-needed certainty to bilateral trade between India and the US,” said SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), in an interview with PTI.
  • The US Supreme Court’s recent decision to invalidate the reciprocal tariffs under the International Emergency Economic Powers Act has been welcomed by Indian exporters, who have long struggled with the country-specific duties.

ALSO READ: US Supreme Court Rejects Trump’s Global Tariffs: How Will Companies Get Refunds? | Explained

( With Inputs from Agencies )


Also In News