Newsletter 
The tariffs imposed by President Donald Trump have had a big impact on not just the stock market, but they’re apparently hurting small businesses as well, who are now suing Trump to block those tariffs from going through.
The lawsuit comes from specifically US-based small businesses. Reportedly, there are five small businesses included in the suit, which has been brought forth in the US Court of International Trade. The businesses included are VOS Selections, FishUSA, Genova Pipe, MicroKits LLC, and Terry Precision Cycling.
The suit alleges that Trump’s tariffs imposed on foreign imports aren’t legal because his basis for imposing them stems from Trump’s claim that the trade deficit is an emergency.
“The President of the United States claims the authority to unilaterally levy tariffs on goods imported from any and every country in the world, at any rate, calculated via any methodology—or mere caprice—immediately, with no notice, or public comment, or phase-in, or delay in implementation, despite massive economic impacts that are likely to do severe damage to the global economy,” the lawsuit states.
It continues by stating that “Congress has not delegated any such power. The statute the President invokes—the International Emergency Economic Powers Act (“IEEPA”)—does not authorize the President to unilaterally issue across-the-board worldwide tariffs.”
The small businesses suing Trump say his tariffs are devastating them
Initially, Trump’s tariffs were proposed worldwide, with each country getting a sharp increase, before Trump paused them for 90 days. As part of the 90-day pause, Trump lowered tariffs to 10% for all but China, which he raised to 125%. Trump changed his tariffs again to exclude things like electronics such as smartphones, laptops, and other similar products.
The tariffs would remain, however, for other foreign imports, like raw materials, for example. There are also plenty of small businesses that rely on imported materials from China to make a final product. Those tariffs are likely going to make it very difficult for small businesses to stay afloat. Even for those who have materials imported from countries other than China might be in trouble. A 10% increase might just be too much for many of these small business owners.
According to the Liberty Justice Center, which is handling this lawsuit for the plaintiffs, that seems to be the case. Liberty Justice Center notes that “Trump’s so-called Liberation Day tariffs of at least 10% on imports from most countries, and higher rates for scores of other nations, are devastating small businesses across the country.”
Trump’s reasoning for the tariffs, a trade deficit in goods, is not an “unusual or extraordinary threat”
Based on the announcement from Liberty Justice Center, Trump is imposing these tariffs based on a law called the International Emergency Economic Powers Act. This law is said to allow the President to invoke emergency economic powers. However, only after they have declared a national emergency in response to an unusual or extraordinary threat to national security, foreign policy, or the US economy, originating outside the US.
Liberty Justice Center is claiming that Trump’s invocation of the IEEPA doesn’t meet these requirements. Therefore, it’s alleging that his tariffs are skirting around the approval needed from Congress to push them through.