(Capitalism Institute)—President Donald Trump’s sweeping tariff plan faces legal opposition from small business owners seeking immediate relief from newly imposed import taxes.
According to Fox Business, the U.S. Court of International Trade (CIT) has rejected a request from small businesses to temporarily halt Trump’s extensive tariff implementation, dealing a significant legal victory to the administration.
The three-judge panel determined that the plaintiffs, represented by the Texas-based Liberty Justice Center, failed to demonstrate they would experience immediate and irreparable harm from the tariffs. Four small businesses from New York, Pennsylvania, Utah, and Vermont brought the lawsuit earlier this month, challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) as the foundation for implementing the new import taxes.
Small businesses challenge Trump’s tariff authority
The plaintiffs argued that their operations heavily depend on imported goods, making Trump’s “Liberation Day” tax particularly burdensome. They sought a temporary restraining order to block the tariffs, claiming the president’s use of IEEPA exceeded his authority.
The Liberty Justice Center’s legal filing emphasized the unprecedented scope of power claimed by the president in this case. They contended that such broad authority to impose unlimited tariffs should be subject to strict judicial scrutiny.
The court’s decision maintains the status quo while the broader case for injunctive relief continues through the legal system. Both parties must submit new filings by early May, with a hearing scheduled for May 13.
White House faces multiple legal challenges
The CIT ruling represents a significant victory for Trump amid numerous legal challenges to his recent executive actions. The administration currently faces lawsuits targeting various initiatives, including the DOGE efficiency agency and immigration policies.
White House Press Secretary Karoline Leavitt has criticized what she termed “activist” judges issuing unfavorable rulings. The administration views such decisions as unauthorized limitations on presidential authority.
The ruling impacts Trump’s broader trade strategy, which includes substantial tariffs on various trading partners, including China, Mexico, and Canada. The administration maintains these measures are necessary for protecting American interests.
Legal battle moves forward with upcoming hearing
The court has scheduled arguments for May 13, when both government lawyers and plaintiffs will present their cases for a preliminary injunction. The plaintiffs’ legal team raised serious concerns about the president’s tariff authority in their initial filing.
The Liberty Justice Center presented this argument in their court documents:
“The power claimed by the President here is extreme: he claims the power to unilaterally impose infinite tariffs of his choosing on any country he chooses — even countries with which we run a trade surplus. Any grant of such authority by Congress to the President should qualify as a major question subject to the strictest judicial scrutiny — which this claim of authority under IEEPA cannot survive.”
The CIT’s ruling focused specifically on the temporary restraining order request, noting only that plaintiffs failed to prove immediate and irreparable harm. This leaves open the possibility of different outcomes in future hearings.
Next steps in the legal proceedings
The U.S. Court of International Trade’s rejection of the temporary restraining order keeps Trump’s sweeping tariff plan in effect while the case proceeds through the legal system. The lawsuit, brought by four small businesses through the Liberty Justice Center, challenges the president’s authority to impose wide-ranging tariffs under the International Emergency Economic Powers Act. Both parties will return to court on May 13 for a hearing on the preliminary injunction request, where judges will evaluate the broader merits of the case.