Businesses Challenge Trump Tariffs in Court, Claim Trade Deficits Aren’t an Emergency

A group of five small businesses has filed a lawsuit against President Donald Trump, challenging recently imposed tariffs on foreign imports. This case, set in the U.S. Court of International Trade, asserts that Trump has overstepped constitutional boundaries by declaring trade deficits an “emergency,” infringing on Congress’s exclusive power to levy tariffs.

The suit claims the International Emergency Economic Powers Act does not grant the President the authority to impose broad tariffs unilaterally. Represented by the Liberty Justice Center, these plaintiffs argue that what’s termed “Liberation Day tariffs”—set at a minimum of 10% for most countries—are jeopardizing small businesses nationwide. One plaintiff, Terry Precision Cycling, anticipates $250,000 in tariff costs by the end of 2025, with projections reaching $1.2 million in 2026, putting its survival at risk.

Notably, the lawsuit highlights that tariffs have been unjustly applied, even to nations with which the U.S. maintains a trade surplus, undermining the President’s rationale. The plaintiffs seek a court ruling to prevent these tariffs, reasserting the principle that taxation must involve representation. As small businesses grapple with unexpected financial burdens, the implications of this lawsuit could resonate well beyond the courtroom. The White House has been approached for comments on this developing situation.