Trump Sued by American Businesses Over Sweeping Tariffs

A coalition of small American businesses has launched a legal challenge against President Donald Trump’s sweeping tariffs, arguing in the U.S. Court of International Trade that the administration exceeded its constitutional authority by imposing broad duties on foreign imports.

The lawsuit, filed by the Liberty Justice Center on April 14, represents five companies that rely on goods from countries affected by the tariffs. Plaintiffs include a New York-based wine and spirits importer, a Pennsylvania sportfishing retailer, a Utah pipe manufacturer, a Virginia producer of educational kits and musical instruments, and a Vermont cycling apparel brand.

These businesses contend that the tariffs—introduced as part of Trump’s so-called “Liberation Day” measures and additional duties on China—have inflicted significant financial harm, with some reporting tens of thousands of dollars in unexpected costs this year alone.

At the heart of the legal dispute is the president’s use of the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. The Liberty Justice Center argues that the IEEPA does not grant the president the authority to unilaterally impose tariffs, a power the U.S. Constitution reserves for Congress.

“No individual should possess the authority to levy taxes that carry such significant global economic repercussions,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center. “The Constitution gives the power to set tax rates—including tariffs—to Congress, not the President”.

The lawsuit seeks to block enforcement of the tariffs and to have the court declare that President Trump acted beyond his legal powers. The plaintiffs assert that there is no precedent for using the IEEPA to impose tariffs and that previous presidents have never claimed such authority.

The Trump administration, for its part, has defended the tariffs as necessary to address what it describes as a national emergency of chronic trade deficits and unfair trade practices by foreign partners, particularly China. White House spokesman Harrison Fields stated, “President Trump is standing up for Main Street by putting an end to our trading partners—especially China—exploiting the U.S. His plan levels the playing field for businesses and workers”.

The legal action in New York is not the only challenge to the administration’s trade policy. A similar lawsuit is pending in a Florida federal court, where another small business owner is seeking to halt tariffs imposed on Chinese imports.

President Trump’s tariffs, which include a 10% base rate on imports from most countries and higher rates for others, have been justified by the administration as a response to what it calls an economic emergency.

However, critics argue that longstanding trade deficits do not constitute the “unusual and extraordinary threat” required to invoke emergency powers under the IEEPA.

The outcome of this case could have far-reaching implications for the balance of power between the executive and legislative branches in setting U.S. trade policy, as well as for the many American businesses affected by the tariffs.