A coalition of small businesses has filed a lawsuit in the U.S. Court of International Trade seeking to block recent tariffs imposed by former President Donald Trump. His suit asserts that Trump has exceeded the authority at his disposal. Through unilateral action, without approval by Congress, he imposed tariffs despite the Constitution’s foundational principle of taxation without representation.
And that’s why the Liberty Justice Center is spearheading a class action legal challenge. They stand in for thousands of small businesses that have been hurt by the “Liberation Day tariffs.” These new tariffs establish a new baseline of at least 10% for imports from virtually every other country. Unfortunately, businesses are now under intense fiscal pressure. One of the plaintiffs is VOS Selections, a New York importer specializing in small-production wines. They in turn make fishusa.com, Genova Pipe, MicroKits LLC, and Terry Precision Cycling, a Vermont company that focuses on women’s cycling clothing.
The lawsuit argues that Trump’s claim that trade deficits are an emergency is baseless. In fact, the suit states, trade deficits have been incurred for decades with little profound economic injury. It underlines that the president’s claim has no proper foundation in law or fact.
“The so-called emergency is a figment of his own imagination,” the suit states. “Trade deficits, which have persisted for decades without causing economic harm, are not an emergency.”
Trump’s actions, as stated in a new complaint from the Liberty Justice Center, violate the International Emergency Economic Powers Act (IEEPA). They claim that the president’s authority to issue tariffs cannot override Congressional power.
“This Court should declare the President’s unprecedented power grab illegal, enjoin the operation of the executive actions that purport to impose these tariffs under the IEEPA, and reaffirm this country’s core founding principle: there shall be no taxation without representation,” the lawsuit claims.
The mom-and-pop businesses party to this lawsuit have all voiced concern that these tariffs are devastating their businesses and putting workers’ jobs at risk. Now they argue Trump is endangering the survival of small businesses nationwide. By laying these new financial burdens on them, he jeopardizes their future.
Let’s not forget that since taking office, Trump has been on the offensive on his tariffs, claiming credit for breaking American manufacturing companies. Critics contend that these tariffs disproportionately affect small businesses, which often lack the resources to absorb increased costs or navigate complex trade policies.
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