Supreme Court Strikes Down Trump Tariffs, Katyal Leads Legal Challenge

The U.S. Supreme Court has delivered a significant blow to former President Donald Trump’s trade policies, striking down his sweeping tariffs in a 6-3 ruling. The decision reaffirms Congress’s constitutional authority over trade and taxation, a victory spearheaded by Indian-origin lawyer Neal Katyal.

Katyal Challenges Trump’s Tariff Authority

Neal Katyal, a partner at Milbank LLP and a professor at Georgetown University Law Center, argued that Trump exceeded his authority when imposing tariffs using the International Emergency Economic Powers Act (IEEPA) of 1977. He contended that the President needed congressional approval for such measures, emphasizing the importance of adhering to the Constitution. Katyal stated that if Trump believed the tariffs were a “excellent idea,” he should have sought congressional authorization. USA Today

Supreme Court Ruling and Congressional Primacy

The Supreme Court’s ruling effectively restores Congress’s primacy in trade policy, reinforcing the separation of powers between the legislative, executive and judicial branches. The decision included support from two Trump-appointed conservative judges, highlighting the broad consensus on the constitutional issue. Indian Express

Trump’s Response and New Tariffs

Following the Supreme Court’s decision, Trump quickly announced new tariffs, initially a 10% global tariff under Section 122 of the Trade Act of 1974, which he later raised to 15%. He labeled the Supreme Court’s judgment as “extraordinarily anti-American” on his Truth Social platform. But, Katyal questioned the legal basis for these new tariffs, pointing out that the Department of Justice (DOJ) had previously argued that Section 122 was not applicable to trade deficits. Firstpost

Expert Analysis Supports Katyal’s Position

Economist and former IMF First Deputy Managing Director Gita Gopinath echoed Katyal’s analysis, clarifying that trade deficits and balance-of-payments deficits are distinct economic concepts. Katyal emphasized on X (formerly Twitter) that the DOJ had previously made this distinction to the Court. X (formerly Twitter)

Impact on India

The new tariffs announced by Trump are expected to affect countries like India, pending the invocation of a different legal authority. This development occurs as the U.S. And India are currently negotiating an Interim Agreement on bilateral trade, which includes adjustments to tariffs on various goods.

Neal Katyal’s Background and Career

Born in Chicago to Indian immigrant parents, a doctor and an engineer, Neal Katyal has dedicated his career to complex constitutional disputes. He is a graduate of Dartmouth College and Yale Law School, and served as a law clerk for Justice Stephen Breyer of the U.S. Supreme Court. He was appointed Acting Solicitor General by President Barack Obama in 2010, representing the federal government before the Supreme Court and Courts of Appeals. Katyal has argued over 50 cases before the Supreme Court, setting records for minority advocates. Business Standard

Key Takeaways

• The Supreme Court reaffirmed Congress’s constitutional authority over trade policy.
• Neal Katyal successfully challenged Trump’s tariffs, arguing they exceeded presidential authority.
• Trump has responded by imposing new tariffs under a different legal provision, which Katyal also questions.
• The ruling has implications for international trade, including U.S.-India trade relations.