Defending tariffs in US court, Trump administration says legal setback would put India-Pakistan ceasefire at risk

Defending the use of emergency powers to impose sweeping tariffs, senior officials in President Donald Trump's administration have told the US Court of International Trade last week that a legal setback limiting Tr'ump’s emergency tariff powers would disrupt trade deals the US is pursuing and jeopardise the ceasefire between India and Pakistan, court filings showed.

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The lawsuit — which could have a wide-spread impact on global trade — was filed by small business owners in the US against the Trump administration. They argued in court that Trump's use of the International Emergency Economic Powers Act (IEEPA) is unlawful because US federal law does not authorise presidents to impose tariffs, court documents showed.

“A ruling that narrows IEEPA would have ripple effects across every domain in which economic instruments are used for strategic effect. For example, India and Pakistan-two nuclear powers engaged in combat operations just 13 days agoreached a tenuous ceasefire on May 10, 2025. This ceasefire was only achieved after President Trump interceded and offered both nations trading access with the United States to avert a full-scale war. An adverse ruling that constrains presidential power in this case could lead India and Pakistan to question the validity of President Trump's offer, threatening the security of an entire region and the lives of millions,” US Secretary of Commerce, Howard Lutnick said in his submission to the court on May 23.