Legal challenges to tariffs President Donald Trump has imposed on imports are mounting.

The Liberty Justice Center, a Libertarian nonprofit public-interest litigation firm based in Austin, TX, has sued the Trump administration in the U.S. Court of International Trade, asserting that the president lacks the legal authority to issue tariffs on countries around the globe without congressional approval.

“No one person should have the power to impose taxes that have such vast global economic consequences,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center. “The Constitution gives the power to set tax rates—including tariffs—to Congress, not the president.”

The suit targets the 10% baseline import tariffs and “reciprocal tariffs” on nations around the globe, which are currently paused but would be in all instances above the 10% baseline if reinstated.

In part, Trump invoked the International Emergency Economic Powers Act (IEEPA) to implement the tariffs, but the Liberty Justice Center asserts the president is not legally allowed to do so. The law, the attorneys argue, empowers a president to use emergency economic powers only after declaring a national emergency in response to an “unusual and extraordinary threat” – particularly to national security, foreign policy or the U.S. economy, as originating from outside the U.S.

Still, no such emergency exists, meaning Trump can’t leverage IEEPA for tariffs, which should render the levies void, the suit maintains. Trump has, in part, cited trade deficits between the U.S. and other countries as the national emergency. But that doesn’t hold water, the Liberty Justice Center said, as trade deficits are not an “emergency nor an unusual or extraordinary threat.”

“Trade deficits have existed for decades, and do not constitute a national emergency or threat to security,” the Liberty Justice Center said in a statement. “Moreover, the administration imposed tariffs even on countries with which the U.S. does not have a trade deficit, further undermining the administration’s justification.”

Beyond the trade deficit, the Trump administration has argued that the alleged roles of Mexico, Canada and China in allowing fentanyl to enter the United States constitutes a national emergency that allows the invocation of IEEPA to justify tariffs on those nations. The administration has said illegal immigration through the Mexican and Canadian borders is another emergency that enables the use of IEEPA for tariff purpose. The Liberty Justice Center and other legal experts have disagreed. 

"IEEPA does not authorize the president to impose across-the-board tariffs — it does not even authorize tariffs at all," Liberty Justice Center said. "Even if the IEEPA did extend such power to the president, that would be an unconstitutional delegation of Congress’s power to impose tariffs."

‘Not Survivable’

The Liberty Justice Center brought the suit on behalf of five businesses that say they’re being irreparably harmed by the tariffs.

The plaintiffs are: VOS Selections, a New York-based company that imports and distributes small-batch wines, spirits and sakes; Genova Pipe, a Utah business that makes plastic pipes, fittings and more for plumbing, irrigation and other applications; MicroKits, a Virginia firm that provides educational electronic kits and musical instruments; Terry Precision Cycling, a Vermont company that creates cycling clothing and gear for women; and FishUSA, an e-commerce business based in Pennsylvania that retails and wholesales sportfishing tackle and related gear.

Legality of Trump Tariffs Questioned as President Hits China With Higher Import Levy Rates https://t.co/S0lj2olaeM

— Chris Ruvo (@ChrisR_ASI) April 15, 2025

The suit says that Terry Cycling has paid $25,000 in unplanned tariffs on goods it has imported so far in 2025. The firm reckons it will shell out $250,000 for tariffs by the end of 2025 if the levies remain. In 2026, according to the suit, Terry Cycling expects to “face an estimated $1.2 million in tariff costs – an amount that is simply not survivable for a business of its size.”

In another suit, New Civil Liberties Alliance (NCLA), a Washington, D.C.-based conservative-leaning nonprofit law firm, has sued Trump, members of his administration, the Department of Homeland Security and others over tariffs placed on China in 2025.

NCLA brought the suit on behalf of Emily Ley, owner of Simplified, a Pensacola, FL-based retailer of notebooks, journals, recipe binders and planners. NCLA is asking the U.S. District Court for the Northern District of Florida to declare tariffs Trump placed on China under IEEPA as unlawful – and to vacate them and to enjoin federal authorities from any enforcement of the levies.

“By invoking emergency power to impose an across-the-board tariff on imports from China that the (IEEPA) statute does not authorize, President Trump has misused that power, usurped Congress’ right to control tariffs and upset the Constitution’s separation of powers,” said Andrew Morris, senior litigation counsel, NCLA.

Four members of the Blackfeet Nation previously sued over Trump’s Canada tariffs, including the Canadian components of his “Liberation Day” tariffs announced on April 2.

“The Canada Orders exceed the President’s constitutional and statutory authority and violate the separation of powers,” said the lawsuit, filed in federal court in Montana. “The imposition of universal tariffs in the Canada Orders is an unconstitutional attempt by the Executive to regulate commerce and violates Plaintiffs’ constitutional and treaty rights.”

Tariffs have been the defining issue for the promotional products industry in 2025. The market imports the vast majority of products it sells in the United States. Soaring tariff rates are making products/importing much more expensive and prompting a scramble to adapt sourcing practices while creating marketplace uncertainty that, executives say, is inhibiting business.