(Washington, D.C.)—In a landmark decision, the U.S. Supreme Court ruled today that the President lacks the authority to unilaterally impose tariffs, affirming that the power to levy taxes and duties on Americans rests solely with Congress. The Court’s decision in Trump v. V.O.S. Selections, Inc. crowns a monumental legal effort by the Liberty Justice Center to defend the separation of powers and protect small businesses from unlawful, arbitrary import duties.
Filed in the U.S. Court of International Trade on April 14, 2025, the lawsuit challenged the Administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose a global 10 percent tariff on nearly all imports and elevated tariffs targeting dozens of countries. The Liberty Justice Center represents five American small businesses harmed by the illegal duties, arguing that IEEPA does not authorize the President to impose tariffs, and that any such reading would constitute an unconstitutional delegation of Congress’ exclusive power to tax and set tariff schedules.
Today’s ruling confirms that the President cannot invoke emergency powers to unilaterally set tariff rates.
“The Liberty Justice Center is proud to have led the fight to challenge these illegal tariffs that devastated small businesses around the country. Federal courts at every level have now recognized that these tariffs, imposed without Congressional authorization, are unlawful and cannot stand,” said Sara Albrecht, Chair of the Liberty Justice Center. “We thank the Justices for their careful consideration of our arguments. And we are deeply grateful to Neal Katyal for his tireless advocacy on behalf of the Constitution and its separation of powers. The Liberty Justice Center’s work is just beginning. We intend to help small businesses navigate the refund process, including developing a centralized database, information portal, and referral network to connect affected companies with qualified attorneys to pursue potential refund claims.”
“This spring, thousands of American small businesses like mine were thrown into chaos. The administration’s tariffs–which my business was forced to pay–threatened our survival. These duties were not like past tariffs set by Congress, which we could plan around. These new tariffs were arbitrary, unpredictable, and bad for business,” said Victor Owen Schwartz, plaintiff and founder of V.O.S. Selections. “Thankfully, courts at every level recognized these duties for what they were: unconstitutional government overreach. We’re grateful to the Liberty Justice Center for its pro bono legal support and to our legal team for their vigorous advocacy. We look forward to the government’s refund of these improperly collected taxes.”
The decision follows a string of victories in the lower courts. In May, the U.S. Court of International Trade unanimously ruled the tariffs illegal and entered a permanent injunction. The Federal Circuit temporarily stayed that injunction pending appeal but ultimately sided with the original decision. The Supreme Court granted review on September 9. Oral arguments were heard November 5, 2025, and today’s Supreme Court ruling provides final clarity that the “Liberation Day” tariffs violated the Constitution and federal law.
The Liberty Justice Center is now working to ensure prompt compliance with the Court’s decision, including the dissolution of all unlawful tariff measures and relief for the affected businesses. A tariff refund interest form is available on our website, here.
The Liberty Justice Center is a nonprofit 501(c)(3) public-interest litigation firm dedicated to standing with everyday Americans and American businesses to protect their constitutional rights, and we are honored to represent Victor and the plaintiffs in this case.