Five of these small businesses are suing former President Donald Trump. They claim that he exceeded his Delegated Authority by holding tariffs on foreign imports. The challenge, filed in the U.S. Court of International Trade, was brought by several auto trade groups. It alleges that Trump unlawfully usurped Congress’s power to levy tariffs under the International Emergency Economic Powers Act (IEEPA).
The suit zeroes in on Trump’s assertion that trade deficits with other countries constitute an emergency. The plaintiffs adamantly insist that this claim is utterly without merit. They argue that trade deficits have persisted for decades without wreaking major economic havoc. The plaintiffs seek to enjoin the new tariffs that Trump has dubbed as the “Liberation Day tariffs.” These tariffs are currently pegged at a low of 10% on imports from virtually every other country.
One of the plaintiffs is VOS Selections, a small New York-based company that imports and distributes small-production wines, spirits and sakes. Accordingly, VOS Selections has raised alarms that these tariffs are killing small businesses like theirs all over the country.
FishUSA, a Pennsylvania-based retail and wholesale e-commerce business specializing in sportfishing tackle and related gear, is among the plaintiffs. Genova Pipe, a Utah manufacturer of plastic pipe, conduit, and fittings has entered the lawsuit, as plaintiffs. They are fighting the tariffs tooth and nail.
The Liberty Justice Center, which represents the group of small businesses, stated that the tariffs threaten their operations and livelihoods. They contend that the tariffs impact not only those businesses but consumers who are forced to pay more due to the tariffs.
“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,” said an attorney representing the plaintiffs.
The suit decries Trump’s alleged emergency a “figment of his own imagination.” Perhaps equally important is its recognition that trade deficits cannot be used as a justification to impose tariffs. The plaintiffs argue that these actions are undemocratic in nature because they circumvent the legislative powers of Congress with respect to tax policy.