On April 14, 2025, the Liberty Justice Center filed a landmark lawsuit challenging the Trump Administration’s authority to unilaterally issue the so-called “Liberation Day” tariffs, which are devastating small businesses across the country.
The lawsuit argues that the Administration has no authority to impose across-the-board, worldwide tariffs without congressional approval. Filed in the U.S. Court of International Trade, the case highlights the unprecedented nature of the tariffs—a global 10 percent duty on nearly all imports, with higher tariffs targeting dozens of countries based on dubious calculations of foreign trade barriers.
The President invoked the International Emergency Economic Powers Act (IEEPA) to justify the “Liberation Day” tariffs, as well as tariffs on Mexico, Canada, and China. But under that law, the President may invoke emergency economic powers only after declaring a national emergency in response to an “unusual and extraordinary threat” to national security, foreign policy, or the U.S. economy originating outside the United States. The lawsuit argues that the Administration’s justification—a trade deficit in goods—is neither an emergency nor an unusual or extraordinary threat. Trade deficits have existed for decades and do not constitute a national emergency. Moreover, the Administration imposed tariffs even on countries with which the U.S. does not have a trade deficit, further undermining its rationale.
As the Liberty Justice Center’s complaint explains, IEEPA does not authorize the President to impose tariffs at all. Even if it did, such power would be an unconstitutional delegation of Congress’s exclusive authority to levy taxes and duties.
The case was filed on behalf of five owner-operated businesses that have been severely harmed by the tariffs: V.O.S. Selections, FishUSA, Genova Pipe, MicroKits LLC, and Terry Precision Cycling—each representing the human and economic toll of unchecked executive power.
On May 28, the Liberty Justice Center secured a major legal victory when the U.S. Court of International Trade unanimously ruled that the tariffs were illegal and issued a permanent injunction banning their enforcement.
After the U.S. Court of Appeals for the Federal Circuit temporarily stayed that injunction pending appeal, the Liberty Justice Center announced that leading appellate lawyers and constitutional scholars Michael McConnell and Neal Katyal, and their firms, had joined V.O.S. Selections, Inc. v. Trump as co-counsel.
On July 8, the Liberty Justice Center filed its response brief at the Federal Circuit, and oral arguments were held on July 31. Following the decision, the federal government petitioned for Supreme Court review.
The U.S. Supreme Court granted certiorari, and oral arguments took place November 5, 2025, at 10 a.m. EST. Recordings can be found on the Supreme Court website, here, and the transcript is available here. The Liberty Justice Center is awaiting the final decision by the Supreme Court.
On February 20, 2026, the U.S. Supreme Court issued a landmark decision holding that the Constitution—not unchecked executive power—governs our economy and our laws.
This ruling restores the separation of powers, reaffirms Congress’s role, and delivers long-overdue relief to American businesses and families harmed by unlawful tariffs.
Liberty Justice Center was proud to bring this case—taking on enormous risk to defend constitutional limits and the rule of law. The victory belongs to every individual who stood up when others would not.
No president—Republican or Democrat—has the constitutional authority to single-handedly impose taxes on the American people. That power belongs to Congress. LJC fought to restore the separation of powers but our work is not done.
Jeffrey M. Schwab serves as Senior Counsel and Director of Litigation at the Liberty Justice Center, where he litigates cases to protect the rights to free speech, economic liberty, private property and other Constitutional rights in both federal and state courts across the country.
Reilly Stephens is a Senior Counsel at Liberty Justice Center, where he assists in cases to protect the rights to free speech, economic liberty, private property, and other Constitutional rights in courts across the country.
James McQuaid is the Managing Staff Attorney at Liberty Justice Center where he assists in cases to protect the rights to free speech, economic liberty, private property, and other Constitutional rights in courts across the country.
Neal Katyal, the former Acting Solicitor General of the United States, is a partner in the Washington, DC office of Milbank LLP and a member of the firm’s Litigation & Arbitration Group.
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