In a major setback to President Donald Trump’s trade agenda, the US Supreme Court on Friday struck down the sweeping tariffs imposed during his term, ruling 6–3 that he had overstepped his legal authority. The decision comes at a time when India had recently signed a trade deal with the United States, lowering tariffs to 18%.
Chief Justice John Roberts said the law does not grant the president unlimited powers to impose tariffs under emergency provisions. The court ruled that the authority over government revenues, including tariffs, rests with Congress under Article One of the US Constitution.
Reacting to the verdict, economist Jeffrey Sachs, in an interview with CNBC TV18, said India should reconsider its trade deal with the US. “Rip us the deal. There’s no point to it anymore. Trump did not have the authority to threaten India. He did not have the authority to impose tariffs on India. He did not have the authority to put penalties on India. All of it was unconstitutional, in violation of the law. Rip it up. There’s nothing there,” Sachs said.
He described the ruling as “quite a bold, clear opinion,” adding that it goes back to the foundations of the American system. Referring to the American Revolutionary War, he said it was fought over “taxation without representation,” which is why the US Constitution placed tariff powers in the hands of elected representatives in Congress.
“It’s not a narrow reading. It’s not a reading about legislative language. It’s a reading about the grab for power by the executive branch on something that does not belong to the executive branch,” he said.
Will Trump try again?
When asked whether Trump could use other legal tools to reimpose tariffs, Sachs said it was possible he might attempt to do so but doubted he would succeed.
“Will Trump try something else? Most likely. But he will also fail,” Sachs said. “The man is a wrecking ball, no question. I’m just advising India, as I’ve been saying for a year, this is baloney. There was never the legality for this. This has been one-person rule in the United States. It’s a nonsense. And if he tries something else, it’ll be nonsense too, because the ability to impose tariffs on India belongs with the US Congress, not with Donald Trump.”
Responding to suggestions that Trump may still have other instruments to pressure countries, Sachs said the issue was not about leverage but about constitutional limits.
“Trump thinks that he’s a New York real estate developer that can use threats as he likes to bully people into agreements. He’s been doing that for a year. But that’s not how our system of government is designed. And today the Supreme Court said it quite clearly. It is not a technical opinion. It is a strong constitutional opinion that this is an unconstitutional grab for power,” he said.
Jeffrey Sachs advice to India: Pause and reassess
With reports that India’s negotiating team was set to travel to the US to review the legal framework of the trade agreement, Sachs urged caution.
“Absolutely. Take a break. Read the opinion, study it, think about all of this, listen to the rest of the world, and then take a trip. Absolutely. Do not act right now on something that has just been voided,” he said. He added that while Trump may not back down, the ruling changes the balance of power.
“He’s not a nice man. He’s not backing down, but he doesn’t have the authority. So it means that India doesn’t have to back down. That’s what it means. It means that other countries don’t have to back down.”