Washington, D.C.: Indian-American lawyer Neal Katyal has strongly criticised US President Donald Trump’s decision to impose a 15% global tariff, arguing that such sweeping trade measures require approval from Congress and must follow constitutional procedures.
Legal Challenge to New Tariff Move
Katyal’s remarks came shortly after the Supreme Court of the United States struck down most of Trump’s earlier tariff actions in a 6–3 ruling, stating that the administration exceeded its authority under emergency economic powers. The court reaffirmed that taxation powers primarily rest with Congress.
Questioning the legal basis of the new tariff, Katyal said the administration’s reliance on Section 122 of the Trade Act of 1974 was questionable. He noted that the provision is typically meant for balance-of-payments crises, not trade deficits.
“If he wants sweeping tariffs, he should go to Congress. That’s what the Constitution requires,” Katyal said, emphasising that any major tariff policy must undergo legislative scrutiny.
Criticism Follows Rapid Tariff Escalation
Trump initially introduced a 10% global tariff as a temporary surcharge under Section 122, which allows such measures for up to 150 days. He later increased it to the maximum permitted 15%, describing the court’s earlier ruling against his tariff policy as “extraordinarily anti-American.”
Katyal pointed out that the US Department of Justice had previously argued in court that Section 122 did not apply to situations involving trade deficits, making its current use inconsistent with earlier legal positions.
Economists Raise Similar Concerns
Gita Gopinath, economist and former First Deputy Managing Director of the International Monetary Fund, supported Katyal’s argument. She highlighted that trade deficits and balance-of-payments deficits are distinct economic concepts, raising further questions about the tariff’s legal justification.
Impact on Global Trade and India
The tariff decision is expected to affect multiple countries, including India. A White House official said India would remain subject to the new global tariff until alternative trade arrangements are established.
The move comes at a time when India and the United States are negotiating an interim bilateral trade agreement involving tariff adjustments across several sectors.
Who Is Neal Katyal?
Katyal, born in Chicago to Indian immigrant parents, is one of the most prominent constitutional lawyers in the US. He served as Acting Solicitor General in 2010 under President Barack Obama and has argued more than 50 cases before the Supreme Court.
Currently a partner at Milbank LLP and a professor at Georgetown University Law Center, Katyal has played key roles in major constitutional cases, including challenges to Trump-era policies and defence of landmark federal laws.
His latest remarks add to growing legal and economic scrutiny over the administration’s new tariff measures and their potential global impact.
