Conservative Nonprofit Launches Court Challenge to Trump Tariffs — A Sign of Things To Come?

Comments
Loading...

A conservative legal nonprofit, the New Civil Liberties Alliance (NCLA) has initiated a lawsuit against President Donald Trump's tariffs, representing a small stationery company based in Florida.

What Happened: According to a report by The Washington Post, an increasing number of conservatives are questioning President Trump’s authority to impose extensive tariffs. The first legal challenge comes from a small stationery company, Simplified, represented by the NCLA. The NCLA has a track record of successful lawsuits, including one that led to the Supreme Court overturning the Chevron deference last year, significantly reducing the power of federal agencies to regulate various aspects of American life.

The NCLA filed a complaint this week on behalf of Simplified, owned by Emily Ley. The complaint challenges the legality of Trump’s tariffs imposed on all Chinese imports earlier this year. The NCLA contends that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify the tariffs was unconstitutional as it does not authorize the president to impose tariffs.

See Also: MSNBC’s Ruhle: Treasury Secretary Bessent Looking for an Exit Amid Tariff Chaos

“No prior president ever thought the IEEPA allowed him to set tariffs. Reading this law broadly enough to uphold the China tariff would transfer core legislative power,” NCLA President Mark Chenoweth said in a statement. The lawsuit alleges that the new tariffs will impose hundreds of thousands of dollars in costs on Ley’s business.

The lawsuit names the United States, Trump, the Executive Office of the President, the Department of Homeland Security, U.S. Customs and Border Protection, and the agencies’ leadership as defendants. The plaintiffs are asking the court to declare the China import tariff unlawful and to prevent its implementation and enforcement.

Despite the market plunge and fears of a recession, Treasury Secretary Scott Bessent downplayed the concerns, stating that the administration was “building the long term,” as reported by The New York Post.

Why It Matters: The lawsuit comes in the wake of global markets plunging after President Trump announced sweeping new tariffs, an event he dubbed “Liberation Day.”

The tariffs sparked backlash from analysts and fears of retaliation from global trade partners. China, the U.S.’s largest trade deficit partner, was hit with a steep 34% tariff, leading to an escalation in the global trade war.

Read Next: Amid Tariff Turmoil, Here’s Why Mike Johnson and John Thune Stand by Trump

Shutterstock: Stock Studio 4477

Got Questions? Ask
Which companies might face increased costs?
How will tariffs impact small businesses like Simplified?
What sectors could benefit from tariff avoidance strategies?
Which stocks may thrive amid trade war escalations?
How could this lawsuit affect trade policies in the long term?
Which industries could pivot due to changing tariffs?
What opportunities arise for import-export companies in this climate?
Will consumer goods see price changes due to tariffs?
Which law firms might gain from increased litigation?
How could global trade partners respond to these tariffs?
Market News and Data brought to you by Benzinga APIs

Posted In: