trade deficits ‘not an emergency’
A group of small businesses has taken legal action against President Donald Trump, claiming that his recent tariffs on foreign imports are unconstitutional and jeopardize the survival of American entrepreneurs.
The lawsuit, filed in the US Court of International Trade, challenges the legal basis for Trump’s imposition of broad trade barriers and argues that his reasoning that trade deficits constitute a national emergency is not supported by facts or law.
“His declared emergency is not based in reality: trade deficits, which have been ongoing for years without causing economic harm, do not qualify as an emergency,” the lawsuit states.
The lawsuit was filed by the Liberty Justice Center on behalf of owner-operated companies nationwide. It argues that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify the tariffs violates the Constitution by bypassing Congress’s authority to regulate commerce and taxes.
“The President does not have the delegated power to do so,” the lawsuit asserts.
“The statute invoked by the President, the IEEPA, does not grant him the unilateral authority to impose worldwide tariffs.”
The complaint highlights that the administration’s tariff policy applies even to countries where the US does not have a trade deficit, raising further doubts about the legitimacy of invoking emergency powers.
The lawsuit calls for the court to declare the President’s actions illegal, halt the imposition of tariffs under the IEEPA, and uphold the principle of no taxation without representation.
One of the plaintiffs, Terry Precision Cycling, a Vermont-based company, has already faced unexpected tariff costs and projects a significant increase in expenses due to tariffs, potentially risking the company’s closure.
Other plaintiffs include VOS Selections, FishUSA, Genova Pipe, and MicroKits LLC, all of whom argue that the tariffs are detrimental to their businesses and could lead to severe financial consequences.
The Liberty Justice Center emphasizes that the case has broader implications beyond individual businesses, as it challenges the unchecked executive authority in trade policy that undermines the constitutional balance of power.
“These tariffs are causing significant harm to American entrepreneurs and consumers, while bypassing the democratic process mandated by the Constitution,” the firm stated.
The White House has not yet responded to requests for comment from The Post.
