'Told India to stop buying Russian oil': Trump team defends sweeping tariffs as tool to 'end the war' amid legal roadblock

Lutnick’s remarks came as the Supreme Court began hearing challenges to Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs. The law allows a US President to regulate economic transactions during a national emergency, but it does not explicitly mention tariffs.

Supreme Court raises doubts on Trump’s authority

Several justices appeared unconvinced by the Trump administration’s argument that IEEPA allows the President to impose tariffs globally. According to Reuters, the court’s liberal and conservative judges alike expressed scepticism about the interpretation.

Damon Pike, a principal with BDO USA’s customs and trade services practice, said nearly all the justices seemed doubtful.

“All the court’s justices, barring two, seemed sceptical that IEEPA gives President Trump the power to levy unlimited tariffs on every product imported from every country around the world," Pike told Reuters.
Trump’s tariffs had been previously challenged by US businesses and 12 Democrat-led states. They argued that the power to impose tariffs rests with Congress under the Constitution.

The Trump administration, however, insists that the tariffs generated $89 billion in revenue between February and September and were meant to address national emergencies such as trade deficits and drug trafficking.

Trump had imposed 50% tariffs on Indian goods, including a 25% levy tied to Russian oil purchases, claiming they funded the Ukraine war. He recently said India agreed to cut Russian oil imports under new US sanctions -- a claim New Delhi has firmly denied, insisting its energy policy is driven by national interest and affordable supply.