(WTVC)—The Liberty Justice Center is challenging the Trump Administration’s authority to unilaterally issue tariffs in a lawsuit that claims the tariffs will hurt small businesses.
A business owner in Tennessee says he’s already seeing the affects of President Trump’s tariffs, particularly on Chinese imports.
Tariffs on Chinese products coming into the United States now stand at 145%, the White House confirmed last Friday. China responded by increasing its tariffs on American products to 125%.
According to data from the U.S. Census Bureau, Tennessee businesses imported nearly $21 billion worth of Chinese-made products in 2024.
The import tax put in place on this amount of goods would be $30.3 billion, more then doubling the cost of the goods.
Bruce Underwood, Vice President of Scale Trains, says the tariffs could soon hit home.
“It could truly wipe out our entire industry in a matter of weeks or months, because most of us are not built to have just cash laying around ready to go for this emergency.”
For over a decade, Underwood says his business has struggled to survive in Cleveland, Tennessee.
Underwood says he and his small team make model trains.
He says the recent uptick in the President’s tariffs against China puts his company at risk.
“We’ll have to lay off employees. And if we have to lay off employees, we’re costing people jobs. And then, as a whole, it could affect that industry, where the whole industry shuts down in that moment. We’re talking about 1,000s of American workers without jobs.”
The White House argues these tariffs will make America stronger.
“More than 75 countries have now reached out to the Trump administration, eager to address the trade issues that have exploited America and hurt our workers in the process. The phones have been ringing off the hook to make deals.”
But the Liberty Justice Center claims the President does not have the authority to enact tariffs.
Jeffrey Schwab, senior council for the Justice Center, says…
“Under the statute that he cites, he does not have the power to issue tariffs. Congress can’t just say, ‘oh, President, you set tariffs whenever you want against whoever you want at any rate you want.’ That would violate the constitution. Congress has the authority to issue taxes and tariffs.”
The Constitution gives Congress the power to set import tariffs.
But during World War I, Congress granted some of that authority to the president in a bid to regulate trade with enemies.
Underwood says his concern lies with his employees’ future.
“The biggest concerns has actually been uncertainty. Uncertainty in our business is not good, and when you can’t have a direct impact in a quick manner, it’s hard. We’re just waiting for that moment where the two sides can come together, make an agreement,” Underwood says.
The White House says another round of tariffs is coming this week.