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 are scheduled for November 5, 2025, at 10 a.m. EST.
This historic case will determine whether a President can unilaterally tax the nation—or whether the Constitution’s power to tax remains where it belongs: in Congress.
We’re defending small businesses at the U.S. Supreme Court and fighting to stop unconstitutional executive overreach.
Jeffrey M. Schwab serves as Senior Counsel and Interim 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 a 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.
Michael W. McConnell is Senior Of Counsel in the Palo Alto office of Wilson Sonsini Goodrich & Rosati, where he specializes in federal appellate litigation. From 2002 to 2009, he served as Circuit Judge on the United States Court of Appeals for the Tenth Circuit, with chambers in Salt Lake City and Denver, where he wrote majority opinions in cases involving securities, antitrust, administrative law, federal lands, First Amendment, criminal law and procedure, and other topics.
Ilya Somin is Professor of Law at George Mason University and the B. Kenneth Simon Chair in Constitutional Studies at the Cato Institute. His research focuses on constitutional law, property law, democratic theory, federalism, and migration rights.
(MSNBC) In this interview on MSNBC with Chris Jensing, Jeffrey Schwab Senior Counsel at Liberty Justice Center, discusses the VOS v. Trump case challenging the legality of President Trump’s tariffs and explores the constitutional questions at stake, the potential economic impact, and what the case could mean for future limits...
(CTV)—In this interview with CTV, the Liberty Justice Center’s Director of Litigation, Jeffrey Schwab, discusses the recent federal appeals court hearing on LJC’s legal challenge to the Trump Administration’s “Liberation Day” tariffs.
...(CNN)—The Liberty Justice Center’s Director of Litigation, Jeffrey Schwab, and plaintiff Victor Schwartz join CNN to discuss the recent federal appeals court hearing on LJC’s legal challenge to the Trump Administration’s “Liberation Day” tariffs.
...(KUTV)—In this interview with Utah news channel KUTV, Liberty Justice Center Senior Counsel and Director of Amicus Practice Reilly Stephens—alongside client Andrew Reese—discusses the Liberty Justice Center’s lawsuit challenging the Trump Administration’s unconstitutional and devastating tariffs.
...(BBC)—In this BBC interview, Liberty Justice Center Senior Counsel and Director of Amicus Practice Reilly Stephens—alongside client Victor Schwartz—discusses the Liberty Justice Center’s lawsuit challenging the Trump Administration’s unconstitutional and devastating tariffs. Learn more about the lawsuit here. The Liberty Justice Center is a nonprofit, public interest law firm that...
Author: Tony Romm. Read the full story from the New York Times here. (The New York Times)—The arguments underscored the financial stakes for U.S. importers as the Trump administration prepares to impose higher rates without the explicit approval of Congress…
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