Overview

• The Liberty Justice Center filed the lawsuit on behalf of five small businesses, claiming the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unconstitutional.
• Plaintiffs argue that trade deficits, cited by Trump as an emergency, are neither a new nor extraordinary threat, and do not justify the unilateral imposition of tariffs.
• The tariffs, including a baseline 10% rate and higher rates targeting specific countries, are reportedly causing severe financial strain on small businesses that rely on imports.
• The lawsuit highlights concerns over the unchecked use of executive power, asserting that the Constitution reserves the authority to impose tariffs to Congress.
• Critics also contend that the tariffs were applied arbitrarily, including on countries without trade deficits, further undermining the administration's justification.