Trump Admin's Tariffs on India Over Russian Oil Draw Criticism

New York/Washington, Sep 4 (PTI): The Trump administration has informed the US Supreme Court that it levied tariffs on India in response to its purchase of Russian energy products. This move aims to address an ongoing national emergency concerning Russia's involvement in the Ukrainian conflict and is deemed integral to the President's efforts to achieve peace in the area. The administration implemented a 25 percent tariff on India, along with an additional 25 percent levy due to India's procurement of Russian oil, leading to an overall 50 percent tariff rate effective from August 27.

In a comprehensive 251-page appeal submitted to the Supreme Court on Wednesday, the Trump administration stated that the President recently authorized tariffs under the International Emergency Economic Powers Act (IEEPA) as part of coping with the national emergency surrounding Russia’s war in Ukraine.

The appeal underscored the critical nature of these actions, asserting that, "The stakes in this case could not be higher. The President and his Cabinet officials believe the tariffs are fostering peace and unprecedented economic success. Any denial of tariff authority might expose our nation to retaliatory trade measures without suitable defenses, potentially driving the US economy towards catastrophe."

The appeal added that because of the IEEPA tariffs, several major trading partners and the 27-nation European Union have already signed framework agreements with the United States, accepting heavily recalibrated tariff terms that favor the US and agreeing to make approximately USD 2 trillion worth of purchases and investments in the American economy.

Last week, the US Court of Appeals for the Federal Circuit in Washington found President Trump's global tariffs illegal in a 7-to-4 decision. However, the court allowed the administration until October 14 to file a petition for a writ of certiorari in the Supreme Court, which the Trump team did on Wednesday.

The appeal highlighted remarks by Treasury Secretary Scott Bessent, calling the tariffs "one of the country's top foreign policy priorities for recent months." Removing these tariffs, he warned, "would lead to dangerous diplomatic embarrassment, exposing the US to risks of retaliation and interrupting ongoing negotiations mid-stream. This would undermine our capability to secure national security and economic interests."

The Trump administration expressed concerns about the "fractured, 7-4 decision" of the appeals court, which deemed the President's use of IEEPA tariffs unlawful. They argued this ruling "casts a shadow of uncertainty over ongoing foreign negotiations sustained by tariffs over the past five months, threatening both finalized framework agreements and ongoing talks."

Officials within the Trump administration, including Bessent and trade advisor Peter Navarro, have accused India's purchases of Russian oil of financing Russia's war efforts in Ukraine. Additionally, Trump stated that he imposed secondary sanctions on India for its Russian oil purchases, ranking it as "the largest purchaser outside of China," and hinted at additional actions stating, "We haven’t done phase two yet or phase three."

India has criticized the US-imposed tariffs, calling them "unjustified and unreasonable." New Delhi emphasized its commitment to taking all necessary measures to safeguard its national interests and ensure economic security.