Liberty Justice Center Files Lawsuit Challenging Executive Authority to Unilaterally Impose “Liberation Day” Tariffs
Austin, TX— On April 14, the Liberty Justice Center filed a lawsuit challenging the Trump Administration’s authority to unilaterally issue the “Liberation Day” tariffs, which are devastating small businesses across the country. The lawsuit argues that the Administration has no authority to issue across-the-board worldwide tariffs without congressional approval.
The lawsuit, filed in the U.S. Court of International Trade, highlights the unprecedented nature of the tariffs, including a global 10% tariff on nearly all imports, with additional higher tariffs targeting dozens of countries based on dubious calculations of foreign trade barriers.
The President invoked the International Emergency Economic Powers Act (IEEPA) to justify the “Liberation Day tariffs, as well as the tariffs on Mexico, Canada, and China. But under that law, the President may invoke emergency economic powers only after declaring a national emergency in response to an “unusual and extraordinary threat” to national security, foreign policy, or the U.S. economy originating outside of the United States. The lawsuit argues that the Administration’s justification— a trade deficit in goods—is neither 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. 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.
And as the Complaint explains, IEEPA does not authorize the President to impose across-theboard tariffs—it does not even authorize tariffs at all; and even if the IEEPA did extend such power to the President, that would be an unconstitutional delegation of Congress’s power to impose tariffs.
“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.”
“If starting the biggest trade war since the Great Depression based on a law that doesn’t even mention tariffs is not an unconstitutional usurpation of legislative power, I don’t know what is,” said Ilya Somin, co-counsel, law professor, Scalia Law School, George Maso
The case is filed on behalf of five owner-operated businesses who have been severely harmed by the tariffs and highlights the human and economic toll of unchecked executive power:
VOS Selections, a 39-year-old New York-based business specializing in the importation and distribution of small-production wines, spirits, and sakes, has been severely impacted by the tariffs. “As a heavily regulated business, we cannot turn on a dime,” said owner Victor Owen Schwartz. “We are required to post our prices with the State Liquor Authority a full month in advance, so we’re locked into pricing decisions that don’t account for these sudden, unpredictable tariffs. This is devastating to our ability to operate and support the farmers and producers we work with around the world.”
FishUSA, Inc., is a 25-year-old retail and wholesale e-commerce business specializing in the production and sale of sportfishing tackle and related gear. Like much of the tackle industry, it sources many of its products from abroad, including Canada, China, South Korea, and Kenya. Because of the unpredictable and wildly fluctuating tariffs, it must hold up the shipment of finished goods from abroad and pause the production of other products. “Instead of focusing on growing our business, creating more jobs in our region, and developing new products that our customers want, we are spending countless hours trying to navigate the tariff chaos that the President is causing for us and all our vendors,” said Dan Pastore, President and co-founder of FishUSA. “It takes years working with factories to design and build our products, and we cannot just shift that business to the U.S. without starting the whole process over again.”
Genova Pipe, a privately held company in Salt Lake City, Utah, manufactures ABS pipe in the United States using imported ABS resin from South Korea and Taiwan. The tariffs have increased raw material costs, impacting their Washington state factory, which primarily exports to Canada. “We operate seven manufacturing facilities across the United States and are committed to producing high-quality products in America. With limited domestic sources, we rely on imports to meet our production needs. The newly imposed tariffs are increasing our raw material costs and hindering our ability to compete in the export market,” said Andrew Reese, President of Genova Pipe.
MicroKits LLC, founded by David Levi, is a small business based in Charlottesville, Virginia, that makes educational electronic kits and musical instruments. The company imports electronic components from China, Mexico, Taiwan, and Thailand, then assembles and finishes the products in its local workshop. “We build as much as we can in the US. We’re proud of that, but these surprise tariffs are crushing us. It’s devastating. The government shouldn’t be able to make sweeping economic decisions like this without any checks or accountability,” said David Levi.
Terry Precision Cycling, a Vermont-based brand of women’s cycling apparel, was severely affected by the 2019 tariffs, and the new Liberation Day tariffs now threaten the company’s survival. “Even before this year’s increases, we were already paying tariffs of up to 39.5%. With the additional 145% now imposed, we can’t survive long enough to shift course,” said Nik Holm, President, Terry Precision Cycling. “Twenty years ago, we made all our apparel in the U.S. but gradually moved production overseas to sustain our business. Bringing manufacturing back would require a long-term strategy supported by consistent government policies, investment in factories with skilled sewers, and access to raw materials that are not subject to high tariffs. Many of our products rely on raw materials that are simply not produced in the U.S.”
V.O.S. Selections, Inc. v. Trump was filed in the U.S. Court of International Trade on April 14, 2025.
The legal filings in V.O.S. Selections, Inc. v. Trump are available here.
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The Liberty Justice Center is a national nonprofit that litigates high-impact cases to defend free speech, educational freedom, workers’ rights, and fight government overreach. Best known for our 2018 Supreme Court win in Janus v. AFSCME, Liberty Justice Center takes on precedent-setting cases—at no cost to its clients. Learn more at LibertyJusticeCenter.org
