A coalition of small businesses has filed a lawsuit against President Donald Trump, arguing that his recent wave of tariffs on foreign imports is unconstitutional and threatens the survival of American entrepreneurs.
The suit, filed Monday in the US Court of International Trade, challenges Trump’s legal authority to impose broad, unilateral trade barriers. The plaintiffs also claim that Trump’s justification for the tariffs — that trade deficits pose a national emergency — is both factually and legally unfounded.
“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 lawsuit continues.
“Nor do these trade deficits constitute an ‘unusual and extraordinary threat.’”
The legal action was brought by the Liberty Justice Center, a conservative public interest law firm, on behalf of owner-operated companies from across the country.
The complaint alleges that Trump’s reliance on the International Emergency Economic Powers Act (IEEPA) to justify sweeping tariffs violates the Constitution by bypassing Congress’s exclusive power to regulate commerce and impose taxes.
“Congress has not delegated any such power,” the lawsuit argues.
“The statute the President invokes — the International Emergency Economic Powers Act (‘IEEPA’) — does not authorize the President to unilaterally issue across-the-board worldwide tariffs.”
According to the filing, the administration’s sweeping tariff policy applies even to countries with which the US has no trade deficit, further calling into question the rationale for invoking emergency powers.
“This Court should declare the President’s unprecedented power grab illegal,” the lawsuit demands, “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.”
Among the companies suing the administration is Terry Precision Cycling, a Vermont-based brand specializing in women’s cycling gear.
The company says it has already paid $25,000 in unexpected tariff fees this year and forecasts that the cost will climb to $250,000 by the end of 2025.
By 2026, the suit claims, Terry Cycling will face $1.2 million in additional tariff expenses — an amount the company says could put it out of business.
Other plaintiffs include VOS Selections, a New York-based importer of boutique wines, sakes, and spirits; FishUSA, a Pennsylvania online retailer of sportfishing gear; Genova Pipe, a Utah manufacturer of plastic piping products; and MicroKits LLC, a Virginia company that produces educational electronics and musical instruments.
The Liberty Justice Center emphasized the broader implications of the case, arguing that unchecked executive authority in trade policy threatens not only small businesses but also the constitutional balance of power.
“These tariffs are inflicting serious harm on American entrepreneurs and consumers, all while skirting the very democratic process the Constitution demands,” the firm said in a statement.
The Post has sought comment from the White House.
