(Mackinac Center for Public Policy)—Can a president unilaterally impose tariffs on nearly every imported good, bypassing Congress?
That’s the question at the heart of a discussion with Jeffrey Schwab, Senior Counsel at the Liberty Justice Center, on the Overton Window Podcast.
“We filed a lawsuit called VOS Selections v. Trump. Our firm, the Liberty Justice Center, is representing five individual small businesses free of charge,” Schwab says.
The case stems from tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which President Trump used to justify sweeping authority on imported goods.
Schwab contends this is an overreach.
“The Constitution gives Congress the power to set tariffs. Congress is allowed to delegate that power, but it can’t just entirely delegate all of the power without any kind of checks or limitations,” he says.
The lawsuit has moved quickly since filing, with oral arguments held on May 13 in the Court of International Trade — an Article III federal court in New York City. The court often handles relatively narrow trade disputes, but the broader implications of this lawsuit make it an exception. “This case, obviously, is a little bit more important and broader because it affects just about every product — every good that’s imported to the United States from just about every country,” Schwab explains.
The businesses involved range from wine importers to electronics kit makers. VOS Selections, for example, imports wine and spirits from Europe. “Wine isn’t the type of thing you can just replace. You can’t. A Bordeaux wine is not replicable in the United States,” Schwab attests. “It’s not taking away American jobs or manufacturing.”
Another client, MicroKits, is a one-man operation importing electronic components. “They’re impacted significantly, some of them even existentially. Our client, MicroKits, is just one guy. If he can’t be competitive, then he might not operate anymore, and he’ll go do something else.”
The uncertainty caused by the president’s broad assertion of authority makes it difficult for businesses to price their products, not confident whether the fluctuation of the president’s tariffs will align to yield profit. Schwab illustrates the issue, “These tariffs are imposed by the President who asserts he has the power to impose tariffs on any country, at any rate, at any time, for any reason that he wants.”
The court is currently weighing whether to issue a preliminary or permanent injunction. “Either way, if we’re successful, we hope that the Liberation Day tariffs will be stopped, and our clients can import without having to worry about these huge amounts of tariffs.”
If the decision goes against the administration, the case is expected to head to the Federal Court of Appeals in Washington, D.C., and possibly the Supreme Court. “It does seem like the kind of case that the Supreme Court would be interested in… It affects the entire country and is such an extreme assertion of executive authority.”
Listen to the full conversation on The Overton Window Podcast.