US Court Rejects Trump Administration's Tariff Justification, Citing India-Pakistan Ceasefire; Imposes Tariff Ban.
Trump: The US International Trade Court has ruled former President Donald Trump's Liberation Day tariffs illegal and has imposed a ban on them. A three-judge panel in Manhattan reached this decision, dealing a blow to Trump's policies. However, during the court hearing, the Trump administration made a surprising claim.
Former Commerce Secretary Howard Lutnick, in his statement to the court, argued that the tariffs were instrumental in achieving a ceasefire between India and Pakistan.
The Connection Between Tariffs and a Ceasefire?
Lutnick claimed that following the implementation of the tariffs by the Trump administration in April 2020, several countries contacted the US. He stated that the pressure exerted by the US tariffs was significant enough to prompt countries like India and Pakistan to engage in negotiations with the US to protect their trade interests.
Lutnick asserted that the ceasefire between India and Pakistan in May 2020 was a direct result of the US tariff policy.
He stated, "During an ongoing military conflict between two nuclear powers, President Trump's intervention and tariff pressure led India and Pakistan to agree to a ceasefire. Had this not happened, war could have broken out between the two nations."
Trump's Claim: "We Offered a Trade Deal, Prevented Nuclear War"
Donald Trump has repeatedly taken credit for the India-Pakistan ceasefire. At the US-Saudi Investment Forum, he stated:
"A few days ago, we brokered a ceasefire to stop the conflict between India and Pakistan. I used trade as leverage, saying, 'Instead of firing missiles, let's make a deal.' I told both countries, 'Let's trade, create beautiful things, and sell them to each other.' And look, they listened, and the war stopped."
The Tariff Ban's Potential Negative Impact on the US
The US court's decision is a significant setback for Trump's policy. The court deemed the Liberation Day tariffs illegal, stating that the president lacked the authority to impose such tariffs.
The Trump administration contends that without the tariff policy, America's negotiating power with countries like India and Pakistan would be weakened. Lutnick argued in court that the removal of tariffs could call into question the India-Pakistan ceasefire, as Trump had only secured the cessation of hostilities by offering both countries a trade deal.
The Truth Behind the India-Pakistan Ceasefire?
A ceasefire between India and Pakistan was established on May 10, 2020. Thirteen days of intense tension preceded this, marked by several instances of cross-border firing.
While the Trump administration claims credit for the ceasefire through its intervention, neither India nor Pakistan has officially confirmed this assertion. The Indian government has consistently maintained a firm stance against terrorism, declaring zero tolerance for terrorist acts.
