A conservative legal organization is suing to prevent President Donald Trump’s emergency tariffs on Chinese goods, the first attempt to challenge Trump’s authority to impose tariffs since he returned to office.
The New Civil Liberties Alliance, a law firm that fights federal overreach, filed a complaint Thursday in Florida federal court on behalf of north Florida paper company Simplified and its owner Emily Ley to stop Trump’s 20 percent tariffs on all Chinese imports under the International Emergency Economic Powers Act.
“The President purported to order these tariffs under the International Emergency Economic Powers Act of 1977 (‘IEEPA’), but that is a statute that authorizes presidents to order sanctions as a rapid response to international emergencies,” the lawsuit asserts.
“It does not allow a president to impose tariffs on the American people. President Trump’s Executive Orders imposing a China tariff are, therefore, ultra vires and unconstitutional. This Court should enjoin their implementation and enforcement.”
Trump declared a national emergency over trade deficits on Wednesday and claimed the power to unilaterally enact sweeping tariffs under that emergency declaration. He had previously declared a national emergency over fentanyl and justified his initial 20 percent tariff on China under that authority. As part of Wednesday’s “liberation day” tariff package, Trump added an additional 34 percent tariffs on Chinese goods. China quickly retaliated Friday with a 34 percent tariff on U.S imports, fulfilling its promise to fight a trade war against the U.S. if compelled to do so.
No other president has used an emergency declaration to enact tariffs and the IEEPA itself says nothing about tariffs. The IEEPA does enable the president to take emergency actions against foreign threats to the U.S., including sanctions and asset freezes, but that does not apply to domestic policy.
NCLA’s legal challenge argues that tariffs on China will harm Simplified’s business because the paper company relies on Chinese imports for certain materials. The company sells planners, organizational tools, and home management products with the goal of helping women simply their lives.
Simplified will face increased costs because of the tariffs, unless it pays separate costs associated with moving its manufacturing operations to a different foreign country. It will likely have to raise prices on consumers and could be made to reduce staff due to higher costs and reduced demand for its products.
While Congress has the Constitutional authority to tax and regulate commerce, certain trade statutes allow the president to create tariffs under very specific circumstances. The IEEPA does not permit across the board tariffs against China, especially because the tariffs do not directly address the stated goal of Trump’s emergency declaration, the NCLA lawsuit contends.
“By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs, and upset the Constitution’s separation of powers,” said Andrew Morris, senior litigation counsel at NCLA.
Trump’s suite of tariffs could significantly raise prices on a range of goods as businesses scramble to navigate an upended global economic order. The president and his officials believe the tariffs are necessary to rebuild American manufacturing and curtail unfair trade practices against the U.S. over the past few decades.