Donald Trump is facing legal backlash from a group of small businesses who’ve had enough of his sweeping new tariffs—and they’re taking him to court to try and stop them.
On Monday, five owner-operated companies filed a lawsuit in the U.S. Court of International Trade, arguing that Trump has overstepped his powers by unilaterally slapping tariffs on imports. They claim he’s using trade deficits as an excuse to declare an “emergency” that doesn’t exist, reported CNBC.
“Congress has not delegated any such power,” the lawsuit says, pointing out that the law Trump is relying on—the International Emergency Economic Powers Act (IEEPA)—was never meant to justify broad, global tariffs.
According to the Liberty Justice Center, which is representing the businesses, these tariffs—set at a minimum of 10% on imports from most countries and even higher for others—are already doing real damage to small operations. “His claimed emergency is a figment of his own imagination,” the suit states. “Trade deficits, which have persisted for decades without causing economic harm, are not an emergency.”
The group also argues that the administration’s justification falls apart when you look at the countries being targeted, many of which don’t even have a trade deficit with the U.S.
Among the plaintiffs are New York’s VOS Selections, an importer of boutique wines and spirits; FishUSA, a Pennsylvania-based fishing tackle retailer; and Genova Pipe in Utah, which makes plastic plumbing and electrical components. Also joining the lawsuit are Virginia’s MicroKits LLC, which sells educational electronics, and Terry Precision Cycling, a women’s cycling gear brand based in Vermont.
Terry Cycling, in particular, says the tariffs are hitting them hard. They’ve already shelled out $25,000 this year alone in unexpected charges and predict that by the end of 2025, that number could rise to $250,000. Looking ahead to 2026, they expect tariff costs could hit a staggering $1.2 million—an amount they say would be impossible to survive.
The businesses argue that the tariffs amount to “taxation without representation” and are asking the court to declare Trump’s actions illegal and block the tariffs from taking effect.
With these small companies now going head-to-head with the former president, this case could turn into a major showdown over presidential power and the real-world fallout of trade policy.