Small Businesses Challenge Trump's 'Liberation Day' Tariffs in Court

Five American small businesses have petitioned a U.S. court to block President Trump's tariffs, arguing misuse of his powers by declaring a national emergency for tariff imposition. The court's decision could impact future executive actions and has sparked significant discourse over presidential authority in trade matters.

On Tuesday, five American small businesses sought judicial intervention to stop President Donald Trump's 'Liberation Day' tariffs. They contended that Trump exceeded his authority by declaring a national emergency to levy sweeping taxes on imports without congressional approval.

Attorney Jeffrey Schwab, representing the plaintiffs in the U.S. Court of International Trade, argued that the move marked an unprecedented expansion of executive power, allowing tariffs 'at any rate, at any time.' This lawsuit, filed by the Liberty Justice Center on behalf of businesses importing goods from affected nations, poses a significant legal challenge.

The case questions the compatibility of the tariffs with the International Emergency Economic Powers Act, a law that permits presidential actions against extraordinary threats. The court's ruling could set a precedent for defining the limits of executive authority in trade and effectively shape future U.S. economic policies.

(With inputs from agencies.)