Trump admin uses India-Pak ceasefire to justify 'Liberation Day' tariffs

Members of the Trump administration told the court that India and Pakistan reached a ceasefire only after Trump interceded and offered both nations trading access with the US to avert a full-scale war

Defending the ‘Liberation Day’ tariffs imposed by US President Donald Trump on April 2, his administration told the US Court of International Trade recently that the emergency powers to impose tariffs will disrupt the ceasefire agreement between India and Pakistan.

 

According to media reports, the Trump administration defended the US President’s ‘sweeping’ tariffs on more than 100 countries by arguing that limiting his emergency power would jeopardise the trade deals that Trump has been pursuing.

 

Members of the Trump administration informed the court that India and Pakistan reached a ceasefire only after Trump “interceded and offered both nations trading access with the US to avert a full-scale war”, news agency PTI reported.

 

 

Previously, Trump took the credit for an “understanding between India and Pakistan to stop all firing and military actions”, following four days of cross-border drone and missile strikes in the aftermath of Operation Sindoor. Trump, during his visit to Qatar, also made a similar claim and asserted that he asked both nations to prioritise trade over conflict, a claim which the Indian government has denied.

 

 

Trump’s tariffs linked to diplomacy

 

US Commerce Secretary Howard Lutnick informed the court that Trump used his emergency power under the International Emergency Economic Powers Act (IEEPA) to impose tariffs aimed at protecting the economy and national security of the country. He also added that the maintenance of these tariffs is vital to Trump's ability to conduct real-world diplomacy.

 

He said, “For example, India and Pakistan - two nuclear powers engaged in combat operations just 13 days ago - reached 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.”

 

He further said, “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-India trade deal

 

On April 2, Trump imposed reciprocal tariffs on over 100 countries, including India, China, Japan, and South Korea. India was hit with a 26 per cent reciprocal tariff. Shortly after the announcement, Trump declared a 90-day pause on tariffs and is currently negotiating deals with several countries ahead of the July 9 deadline. 

Since then, India has been trying to reach an agreement with the US. Trump previously claimed that trade talks with India are “coming along great” and he also asserted that a deal with “India, Japan, and South Korea” is likely soon. However, the US signed its first trade agreement with the UK, and a deal between the US and India is yet to be finalised. 

 

[With agency inputs]