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Court of International Trade Hears First Legal Challenge to Trump’s Sweeping Tariffs

Small businesses argue the tariffs exceed presidential authority, while the DOJ defends them as lawful under emergency powers.

A woman's sign claims tariffs took her husbands job during the anti-Trump protest on May 1, 2025, in Sheboygan, Wisconsin.
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Overview

  • A three-judge panel in Manhattan is hearing oral arguments from small businesses challenging President Trump's April tariffs as unconstitutional under the International Emergency Economic Powers Act (IEEPA).
  • The plaintiffs, including a New York liquor distributor and businesses from Utah, Virginia, Pennsylvania, and Vermont, claim the tariffs cause irreparable harm by disrupting import-dependent operations.
  • The Department of Justice argues the tariffs are justified by a national emergency declaration and congressional authorization under IEEPA, emphasizing the president's authority in foreign affairs and national security.
  • This marks the first time the Court of International Trade, a specialized trade-focused court, is reviewing the merits of lawsuits against the tariffs, which face at least six separate legal challenges.
  • The court previously denied an emergency injunction to block the tariffs, finding insufficient evidence of immediate and irreparable harm.