A coalition of five small businesses filed a lawsuit against President Donald Trump on Monday, contesting the new tariffs on foreign imports that he has recently implemented.
The case was presented in the U.S. Court of International Trade and claims that Trump has overstepped his authority, unlawfully taking Congress’s power to impose tariffs by declaring trade deficits with other nations as an emergency situation.
The lawsuit states, “Congress has not delegated any such power.” It further argues that the authority the President cites—the International Emergency Economic Powers Act (‘IEEPA’)—does not permit the President to unilaterally enforce sweeping global tariffs.
The Liberty Justice Center, representing the plaintiff businesses, argues that Trump’s “Liberation Day” tariffs, which start at 10% on goods from most countries and are even higher on various others, are detrimental to small businesses nationwide.
“The emergency he has claimed is merely a figment of his imagination; trade deficits, which have occurred for decades without producing negative economic impacts, are not emergencies,” the lawsuit asserts.
Moreover, it contends, “These trade deficits do not represent an ‘unusual and extraordinary threat’.” The Liberty Justice Center also pointed out that the tariffs affect countries with which the U.S. has no trade deficits, thereby weakening the administration’s rationale.
“This Court should declare the President’s unprecedented power grab illegal, halt the executive actions that are said to impose these tariffs under the IEEPA, and reaffirm this country’s fundamental principle: there shall be no taxation without representation,” the complaint adds.
The plaintiffs include New York’s VOS Selections, which specializes in importing and distributing niche wines, spirits, and sakes; FishUSA from Pennsylvania, a retail and wholesale e-commerce provider of fishing gear; and Genova Pipe in Utah, which manufactures plastic piping and fittings for plumbing, irrigation, and electrical use.
The additional plaintiffs include MicroKits LLC from Virginia, which produces educational electronic kits and musical instruments, and Terry Precision Cycling, a women’s cycling apparel brand based in Vermont.
The lawsuit indicates that Terry Cycling has already incurred $25,000 in unexpected tariffs this year and anticipates that total tariff expenses will reach approximately $250,000 by the close of 2025.
In 2026, the company estimates $1.2 million in tariff-related costs, a figure deemed unsustainable for a business of its scale.
Finance Newso has reached out for comments from the White House regarding the ongoing lawsuit.
