Small Businesses Challenge Trump Tariffs in Federal Trade Court

Tuesday 15 April 2025 - 15:11

By: Zahouani Ilham

Small Businesses Challenge Trump Tariffs in Federal Trade Court

On April 14, a nonpartisan legal organization, the Liberty Justice Center, filed a lawsuit in the U.S. Court of International Trade to challenge former President Donald Trump's extensive tariffs on foreign imports. The group represents five small American businesses ranging from a wine importer in New York to an educational kit manufacturer in Virginia who argue that Trump exceeded his constitutional powers by unilaterally imposing the tariffs.

The contested measures include the April 2 "Liberation Day" tariffs and separate tariffs aimed at China. Jeffrey Schwab, senior counsel at the Liberty Justice Center, emphasized that only Congress holds the constitutional authority to set tax policies, including tariffs, and not the President.

In response, White House spokesperson Harrison Fields defended the tariffs, claiming they were necessary to protect American workers and address long-standing trade imbalances, particularly with China. He argued that the administration’s policies were designed to support domestic businesses.

This is not the only legal challenge to Trump’s trade policies. A similar case is underway in Florida, where another small business owner seeks to stop the China-related tariffs.

President Trump had ordered a 10% tariff on goods from all countries, with even higher rates on nations accused of restricting U.S. imports. These measures were briefly delayed for 90 days. The executive order cited the International Emergency Economic Powers Act (IEEPA), a law granting special authority to presidents in times of unusual threats. However, the Liberty Justice Center contends that the IEEPA does not authorize the use of tariffs, and no previous administration has used it in this way.

The lawsuit seeks to halt the implementation of the tariffs and requests a judicial ruling declaring that the former president lacked the authority to impose them. The U.S. Court of International Trade, located in New York, handles a wide range of trade-related legal matters.