(Here Chattanooga)—The Liberty Justice Center has filed a lawsuit in Memphis against the Trump Administration’s tariffs, claiming they harm small businesses. Business owners like Bruce Underwood express deep concerns over the existing tariffs and their impact on local economies. As trade tensions with China escalate, the conflict raises constitutional debates about who holds the power to set tariffs, while consumers face rising prices and economic uncertainty.
Liberty Justice Center Takes Aim at Trump’s Tariffs in Tennessee
In the vibrant city of Memphis, a new battle is brewing over the controversial tariffs imposed by the Trump Administration. The Liberty Justice Center has decided to file a lawsuit challenging the administration’s power to enact these tariffs all by itself, arguing that they are having a detrimental effect on small businesses. This conflict comes as trade tensions between the United States and China ratchet up, impacting countless local companies and their employees.
Impact on Small Businesses
Among the many voices against the tariffs is Bruce Underwood, who runs a model train business called Scale Trains. Underwood has expressed serious concerns, stating that the tariffs are already causing issues for his company. With tariffs on Chinese imports skyrocketing up to 145%, the landscape for small businesses has become increasingly precarious. In retaliation, China has raised its tariffs on American products to as high as 125%, making trade even more challenging.
In a staggering statistic, businesses in Tennessee imported nearly $21 billion worth of Chinese-made products in 2024 alone. This hefty importation has led to a staggering $30.3 billion in taxes on these goods. For small businesses like Underwood’s, the implications are immense. After a tough decade, the tariffs present a grave danger to his business and the futures of his employees, putting the livelihoods of many families at risk.
Constitutional Concerns and Economic Arguments
The White House stands by its decision, arguing that these tariffs are essential to fortifying the U.S. economy. However, the Liberty Justice Center challenges this view by asserting that it is Congress, and not the President, who holds the authority to set import tariffs, as outlined in the Constitution. Although Congress had previously granted the President the power to regulate trade during World War I, concerns have resurfaced regarding the extent of authority given to the executive branch.
Future Tariffs and Consumer Concerns
The Silver Lining for Some Industries
While many small businesses wring their hands over the ongoing economic uncertainty, there are a few sectors that could see a boost from Trump’s tariffs. Domestic battery recyclers and U.S. steel and aluminum producers may find opportunities amid the chaos. Additionally, the situation may actually make domestic battery recycling more appealing, especially since China has been withholding essential rare-earth materials.
Even various automakers are feeling the heat of the tariffs. Companies like Tesla and Honda could be better positioned to weather the storm because their products have higher domestic content. Still, all automakers rely heavily on parts sourced from abroad, particularly from China, which places them in a worrying predicament as pricing dynamics fluctuate.
Ultimately, consumers are expected to bear the brunt of these escalating tariffs. With prices on various goods likely to rise, many will face tough decisions about their purchasing priorities ahead. Only time will tell how this swirling situation will settle, but for the moment, small business owners and consumers alike continue to navigate the complexities of an uncertain economic landscape.