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The lawsuit argues that Trump has no legal authority to impose the "liberation day" tariffs. The suit was filed in the US Court of International Trade on Monday, April 14.
Trump reversed course and paused many of his tariffs for 90 days but escalated duties on China to 145%. He enacted the tariffs unilaterally, invoking the 1977 International Emergency Economic Powers Act to bypass Congress.
The suit claims that a trade deficit doesn't constitute a national emergency that would give Trump the authority to impose the tariffs.
"This court should declare the President's unprecedented power grab illegal, 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," the suit said.
The case was filed by the Liberty Justice Center on behalf of small, owner-operated businesses already struggling to stay afloat. The plaintiffs include VOS Selections of New York City, FishUSA of Pennsylvania, Genova Pipe of Utah, MicroKits of Virginia, and Terry Precision Cycling of Vermont.
MicroKits, a Charlottesville, VA, company that makes educational electronics, said it's worried about surviving if the policy stays in place.
"At the current rates, MicroKits cannot order parts from China and will have to pause operations when it runs out of parts," the suit said. "The tariffs on imports from countries other than China will force MicroKits to raise prices — even if the tariffs on Chinese imports didn’t force it to pause operations."
Terry Precision Cycling, a women's cycling apparel company, said it has already paid $25,000 in tariffs in 2025 and expects to pay $250,000 by the end of the year.
"Looking ahead to 2026, if no changes are made to current trade policy or its supply chain structure, Terry Cycling will face an estimated $1.2 million in tariff costs – an amount that is simply not survivable for a business of its size," the suit said. "To manage these increases, Terry has been forced to pass along costs to its customers and will also decrease product offerings and reduce availability to retail partners.
"In the short run, these tariffs are an existential threat to Terry Cycling."
Based in Erie County, PA, FishUSA said it has delayed shipments and paused production of some fishing gear because of the tariffs and uncertainty over future rates.
"FishUSA imports many of its products, including private label products, from foreign countries including Canada, China, South Korea, and Kenya," the suit said. "The imports FishUSA relies on are not readily available from a United States supplier and cannot be obtained from a United States supplier without substantial additional cost and delay in delivery."
VOS Selections, a wine and spirits importer, said the uncertainty around tariff rates makes it difficult to plan shipments or set prices.
"V.O.S. Selections, Inc. cannot domestically source the variety of wines, spirits, and sake it offers," according to the suit. "Wine produced in different regions of the globe is not fungible due to unique characteristics of taste, texture, and aroma imparted by climate, soil quality, grape varietals, elevation, and other factors."
Trump unveiled the tariffs on Wednesday, April 2, citing the US trade deficit as the reason for invoking the IEEPA – a law typically used for sanctions or financial restrictions in national security emergencies.
"Trade deficits have existed for decades and do not constitute a national emergency or threat to security," Liberty Justice Center said. "Moreover, the administration imposed tariffs even on countries with which the US does not have a trade deficit, further undermining the administration's justification."
President Donald Trump announced sweeping tariffs in the Rose Garden at the White House on April 2, 2025.
Trump has defended his trade policies, claiming they'll entice companies to produce more goods in the US.
"What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People," he posted on his social media platform Truth Social on Sunday, April 13. "We also cannot let them continue to abuse us on Trade, like they have for decades, THOSE DAYS ARE OVER!"
The legal challenge comes as business leaders across the country are raising alarms about the economic fallout.
The industry group Chief Executive released a poll saying 62% of CEOs expect a recession within six months, with many blaming the tariffs for driving up costs, creating uncertainty, and slowing hiring. Some CEOs have warned that the policy could lead to job cuts, higher prices, and long-term economic damage.
If successful, the lawsuit could block the tariffs and limit future presidents from taking similar action without approval from Congress.
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