The recent surge in global trade tensions has led to a significant increase in import tariffs imposed by the US government on various foreign goods. In response, a group of five small businesses has taken matters into their own hands by filing a lawsuit against President Donald Trump, seeking to block these new tariffs.

Background and Motivation

The small businesses, which are represented by the Liberty Justice Center, have alleged that President Trump’s imposition of new tariffs is an overreach of his executive powers. The lawsuit, filed in the U.S. Court of International Trade, claims that the President has usurped Congress’s authority to levy tariffs by claiming that trade deficits with other countries constitute an emergency.

• The International Emergency Economic Powers Act (IEEPA) does not authorize the President to unilaterally issue across-the-board worldwide tariffs.
• The statute invoked by the President, IEEPA, has been misinterpreted by the Trump administration to justify the imposition of tariffs.

Impact on Small Businesses

The small businesses claim that the new tariffs will have a devastating impact on their operations and profitability. The Liberty Justice Center stated that the tariffs will disproportionately affect small businesses, which often lack the resources to absorb the costs of increased tariffs.

• The tariffs will increase the cost of goods for consumers, leading to higher prices and reduced demand.
• The tariffs will also limit the ability of small businesses to compete with larger companies, further exacerbating the economic impact.

Other Key Points

1. Terry Precision Cycling, a Vermont-based brand of women’s cycling apparel, expects to face an estimated $1.2 million in tariff costs by the end of 2025.
2. MicroKits LLC, which makes educational electronic kits and musical instruments, has already paid $25,000 in unplanned tariffs this year.
3. The Trump administration has imposed tariffs even on countries with which the United States does not have a trade deficit, further undermining the administration’s justification.

Expert Opinion

“His claimed emergency is a figment of his own imagination: trade deficits, which have persisted for decades without causing economic harm, are not an emergency,” the suit says.

Conclusion

The lawsuit highlights the significant economic impact of the new tariffs on small businesses. It also underscores the need for greater transparency and accountability in the administration’s decision-making process. As the case moves forward, it is clear that the outcome will have significant implications for the US economy and the interests of small businesses.

“The Liberty Justice Center is committed to protecting the rights of small businesses and upholding the rule of law in the face of executive overreach. We will continue to fight for the rights of our clients and the American people.”
— John H.