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U.S. Companies File Lawsuits to Prevent Imposition of Trump Tariffs, Argue Trade Deficits are Not an Urgent Issue


A group of five small businesses has sued President Donald Trump, seeking to block the new tariffs he has imposed on foreign imports. The lawsuit alleges that Trump has illegally taken Congress’ power to levy tariffs by claiming trade deficits with other countries as an emergency, which they argue is not authorized under the International Emergency Economic Powers Act (IEEPA). The group, represented by the Liberty Justice Center, argues that trade deficits have not caused economic harm in decades and do not constitute an emergency. They also point out that the administration imposed tariffs even on countries with which the US does not have a trade deficit. The plaintiffs include businesses such as an import and distribution company, a retail and wholesale e-commerce business, a plastic pipe manufacturer, a maker of educational electronic kits, and a women’s cycling apparel brand. The lawsuit claims that these tariffs are devastating small businesses across the country, with one of the plaintiffs projecting to face $1.2 million in tariff costs by 2026, which they argue is not survivable for a business of its size. CNBC has requested comment from the White House on the lawsuit.

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