US companies sue Trump over new tariffs, accusing him of abuse of power and seeking a judicial halt.

The lawsuit, led by the Liberty Justice Center, argues that Trump has exceeded his authority by invoking trade deficits as a national emergency and unilaterally imposing massive tariffs under the International Emergency Economic Powers Act (IEEPA).

 

Congress has not delegated such power, the lawsuit categorically states. According to the plaintiffs, the president misused the IEEPA, since this law only allows for emergency economic measures in the event of a unusual and extraordinary threat to national security or the economy, conditions that, they claim, are not met in this case. Furthermore, they claim that tariffs have even been imposed on countries without a trade deficit with the United States, further undermining the administration's justification.

 

The Liberty Justice Center, which represents the affected companies, was blunt:

 

No individual should have the power to impose taxes that have such far-reaching global economic repercussions. The Constitution grants Congress the power to set tax rates—including tariffs—not the president., said Jeffrey Schwab, senior staff attorney for the center.

 

In the lawsuit, the lawyers emphasize:

 

Their supposed emergency is a product of their own imagination: trade deficits, which have persisted for decades without causing economic damage, do not constitute an emergency. Nor do these trade deficits constitute an 'unusual and extraordinary threat'..

 

The plaintiffs include companies such as VOS Selections (a New York-based wine and spirits importer), FishUSA (a sport fishing e-commerce company in Pennsylvania), Genova Pipe (a pipe manufacturer in Utah), MicroKits LLC (a toy manufacturer in Virginia), and Terry Precision Cycling (a cycling apparel brand in Vermont). The latter claims to have already paid $25,000 in unexpected tariffs and estimates that costs could climb to $2025 by the end of 250,000, and reach $2026 million in 1.2.

 

The lawsuit asks the court to block the tariffs and declare that Trump lacks the authority to impose them.

 

This Court should declare the President's unprecedented power grab illegal., the plaintiffs demand, recalling the principle of There is no taxation without representation.

 

Economic impact and context

 

The new tariffs, which reach rates of 10% for most products and up to 145% for imports from China, have raised the average tariff rate in the US to levels not seen since 1909. Analysts warn that the measure particularly affects small and medium-sized businesses, which face a dilemma: raise prices and risk selling less or bear the costs and see their profit margins reduced. The Russell 2000 index, which groups listed small and medium-sized companies, has fallen 16% this year, twice as much as the S&P 500, reflecting the negative impact of the tariffs.

 

The Commerce Department has also announced the opening of a consultation period for possible new tariffs on pharmaceuticals and microprocessors, which could further expand the scope of the trade war.

 

For his part, Donald Trump defended his tariff policy on social media, asserting that no one will be spared the effects of unfair trade balances and that we need to make products in the United States and not be held hostage by other countries. The president insisted that America's "golden age" will mean more and better-paying jobs, and that he will treat other countries, particularly China, the same way they have treated us.

 

So far, the White House has not issued any official comment on the lawsuit.

 

The legal battle is just beginning and could set a key precedent regarding the limits of presidential power over trade policy and the separation of powers in the United States.