The Coalition of Small Businesses has filed a lawsuit against President Donald Trump. He claims that his recent wave of tariffs on foreign imports is unconstitutional and threatens the survival of American entrepreneurs.
The lawsuit filed Monday in the US Court of International Trade; Challenge Trump’s legal authority Implement broad, unilateral trade barriers. The plaintiffs also argue that Trump’s justification for tariffs, namely the trade deficit, causes a state emergency — is effectively legally unfounded.
“The emergency he allegedly claims is a diagram of his own imagination. The trade deficit that has continued for decades without causing economic harm is not an emergency,” the lawsuit continues.
“These trade deficits do not constitute “an extraordinary threat.” ”
The legal action came from the Liberty Judicial Center, a conservative public interest law firm, on behalf of companies run by owners around the country.
The complaint argues that Trump’s reliance on the International Emergency Economic Power Act (IEPA) to justify drastic tariffs is violating the constitution by circumventing Congress’s exclusive authority, regulating commerce and imposing taxes.
“Congress has not delegated such powers,” the lawsuit argues.
“The President calls the law – the International Emergency Economic Force Act (“Ieepa”) — does not allow the President to unilaterally issue tariffs around the world. ”
The administration’s drastic tariff policies apply to countries with no trade deficit in the United States, raising questions about why they are calling emergency situations, according to the filing.
“This court should declare an illegal grasp of the President’s unprecedented power,” the lawsuit demands that “it is necessary to prohibit the operation of enforcement measures that claim to be imposed under Ieepa and reaffirm the country’s core establishment principles.”
Among the companies suing for the administration is Terry Precision Cycling, a Vermont-based brand specializing in women’s cycling gear.
The company said it had already paid $25,000 in unexpected tariffs this year, and it expects costs to rise to $250,000 by the end of 2025.
By 2026, the lawsuit alleges that Terry Cycling will face $1.2 million in additional tariff costs.
Other plaintiffs include VOS Selection, a New York-based importer of boutique wines, souquets and spirits. Fishusa, the online retailer of Pennsylvania Sportfishing Gear. Genova Pipe; and Microkits LLC, the Utah manufacturers of plastic plumbing products, are Virginia companies that produce educational electronics and musical instruments.
The Liberty Justice Center highlighted the broader implications of the case, arguing that unconfirmed enforcement in trade policy threatens not only small businesses but also the balance of power in the constitution.
“These tariffs are causing serious harm to American entrepreneurs and consumers while rushing through the highly democratic process the Constitution requires,” the company said in a statement.
This post is being asked for comment from the White House.
