The NGO Liberty Justice Centre has filed a lawsuit against Trump and his tariff policy. They argue that the government does not have the right to arbitrarily set import tariffs. The tariffs would destroy small businesses and exceed the president's constitutional powers. The lawsuit was signed by five owner-managed companies, including Terry Precision Cycling. The Vermont-based company has specialised in cycling clothing for women for four decades. Terry was already affected by the tariff increase in 2019 and now sees its existence threatened. The lawsuit has been filed with the US Court of International Trade.
Existential fear due to customs regulations
The administration justified the tariffs, including against Mexico, Canada and China, under the International Emergency Economic Powers Act (IEEPA). However, the Liberty Justice Centre argues that the IEEPA only allows for emergency economic powers in response to an unusual and extraordinary threat to national security, foreign policy or the US economy from outside the United States. Trump claims that a trade deficit is already a threat. The companies disagree in their lawsuit against Trump and argue that a trade deficit does not constitute a threat as defined in the law. Furthermore, tariffs have been imposed on countries with which the US does not have a trade deficit, which contradicts the government's reasoning.
We cannot survive for long with the additional 145 per cent
"Even before this year's increases, we were paying tariffs of up to 39.5 per cent. With the additional 145 per cent being imposed now, we can't survive for long," said Nik Holm, President of Terry Precision Cycling. "Twenty years ago, we made all of our apparel in the U.S., but gradually moved production overseas to sustain our business. Reviving production would require a long-term strategy supported by consistent government policies, investment in factories with sophisticated wastewater systems and access to raw materials that are not subject to high tariffs. Many of our products are based on raw materials that are simply not produced in the US."
"The Constitution gives Congress the power to set tax rates - including tariffs - not the president," reads a press release from the Liberty Justice Centre. In recent weeks, other managers have also emphasised how dangerous the tariffs are for the US economy. Bicycle industry are. Almost all major bicycle manufacturers are dependent on imports and warn that many jobs would be jeopardised. It is still uncertain whether the tariffs will actually be increased in the long term or whether Trump will prematurely abandon his risky attempt at blackmail. The lawsuit against Trump will also clarify whether a tariff increase by Trump is legally legitimate.
Kristian Bauer
Editor
