
Trump administration sued over tariffs in US international trade court
The lawsuit was filed by the Liberty Justice Center, a legal advocacy group, on behalf of five US businesses that import goods from countries targeted by the tariffs.
'No one person should have the power to impose taxes that have such vast global economic consequences,' Jeffrey Schwab, Liberty Justice Center's senior counsel, said in a statement. 'The Constitution gives the power to set tax rates – including tariffs – to Congress, not the President.'
The Liberty Justice Center is the litigation arm of the Illinois Policy Institute, a free market thinktank.
According to the group's statement, the case was filed on behalf of five owner-operated businesses who have been severely harmed by the tariffs. The businesses include a New York-based company specializing in the importation and distribution of wines and spirits, an e-commerce business specializing in the production and sale of sportfishing tackle, a company that manufactures ABS pipe in the United States using imported ABS resin from South Korea and Taiwan, a small business based in Virginia that makes educational electronic kits and musical instruments, and a Vermont-based brand of women's cycling apparel.
Representatives of the White House did not immediately respond to an email seeking comment.
The Trump administration faces a similar lawsuit in Florida federal court, where a small business owner has asked a judge to block tariffs imposed on China.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
16 minutes ago
- Reuters
Montreal over Miami: Patriotic Canadians change summer vacation plans
TORONTO, July 25 (Reuters) - Canadians are trading their annual vacation south of the border for road trips around Ottawa, the midnight sun in Yukon, whale watching in Nova Scotia or hiking in Banff. The newfound desire to stay local started earlier this year when U.S. President Donald Trump threatened to annex Canada and imposed a series of tariffs on Canadian goods, spurring a 'Buy Canadian' movement to boycott U.S. businesses and avoid traveling to the U.S. London, Ontario-based Guess Where Trips sells curated mystery road trip packages in four Canadian provinces and reported a 75% increase in sales of trips across the country so far this year from a year ago. "It is clear that more Canadians are choosing to explore small businesses and hidden gems close to home, rather than crossing the border for their holidays and vacations," operations manager Jessica Bax said. Road trips around Ottawa are among their most popular packages, Bax said, as more Canadians explore their capital city. Prime Minister Mark Carney has also made a pitch for Canadians to take advantage of a new "Canada Strong" pass that grants free or discounted access to several national parks, historic sites and museums this summer. "Canadians are making choices to visit this great country, spend time here with their family, with their friends. They're making choices to buy Canadian products," he said in a press briefing in Huntsville, Ontario on Tuesday. The discount pass contrasts with Trump ordering higher entrance fees at U.S. national parks for visitors from other countries. A Bank of Canada survey this week showed that 55% of Canadians plan to spend less money vacationing in the United States this year while 35% said they would spend more on traveling within Canada. A survey by TD Bank showed 64% of Canadians polled planned to travel within the country, mirroring an increase in domestic flight bookings. Canadian domestic tourism spending rose 4% in the first quarter this year from a year earlier, said Destination Canada, a government agency that promotes Canadian tourism. The number of flight return trips from the United States made by Canadians fell 17% in May from a year earlier, while the number of such trips made by car fell by 37% that month, according to Statistics Canada. Walter Flower, who operates whale watching tours in Lunenburg, Nova Scotia, said he has been busier this year as more people exploring the UNESCO World Heritage town booked a 45-minute ocean adventure hoping to spot whales off the east coast. Divya Mohan, a communications specialist in Toronto, says she had initially planned to go to Texas this year but instead opted to explore the city of Winnipeg in Manitoba. "It just felt like the timing wasn't right... may be in the future," Mohan, 39, said of her trip in April. "Winnipeg is just one more destination in Canada to explore," Mohan said, coming away impressed with the Canadian Museum for Human Rights. On the west coast in British Columbia, RVs have gained popularity, said Storm Jespersen, a regional manager at family-owned tourism firm Evergreen Hospitality Group. "This year is going to be the busiest year in our company's history across our 26 properties... it's so busy, I don't think you can even rent one (RV) very easily right now," said Jespersen. Traveling in Canada can be expensive as domestic flights to remote locations often cost more than traveling to the United States or even Europe. But travelers have found ways to do it cheaper - through road trips or by hunting for discounts. "Doing road trips or just weekend trips to a cabin nearby is a great way to switch things up without spending thousands of dollars to fly a family of four across the country and back," said Vancouver-based marketing executive Kramer Solinsky. On his list this year, Solinsky plans to visit Montreal and the east coast for the first time and is traveling to Mexico City and Osaka in Japan instead of other sun-soaked options like Florida and California. To make some remote regions in northern Canada more accessible, Air North - the airline for the northern provinces of Yukon and Northwest Territories - added more capacity and non-stop routes for the summer, betting on higher demand from what it said was "clear and growing interest among Canadians in exploring more of their own country" Air North said arrivals to Yukon rose 7.6% from January to June this year and the airline continues to see growth in demand for flights to northern Canada. Other Canadian carriers have reported similar trends: Porter Airlines increased its summer network capacity to domestic travel to 80% from 75%, while peer WestJet in May suspended nine routes between Canada and the United States citing lower demand.


Reuters
16 minutes ago
- Reuters
Volkswagen cuts 2025 guidance after $1.5 billion tariff hit in first-half
BERLIN, July 25 (Reuters) - Volkswagen ( opens new tab reported a 1.3-billion-euro ($1.5-billion) first-half hit from tariffs and cut its full-year sales and profit margin forecasts in the German carmaker's first assessment of the damage from U.S. President Donald Trump's trade war. Global automakers have booked billions of dollars of losses and some issued profit warnings due to U.S. import tariffs. The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric-vehicle (EV) transition. Volkswagen, Europe's biggest carmaker, now expects this year's operating profit margin between 4% and 5%, compared with a previously forecast 5.5-6.5% range. Full-year sales, earlier forecast to rise by up to 5%, are expected to be level with the previous year. Volkswagen shares dropped after market open on Friday by as much as 4.6%, before paring their losses and turning positive as the day progressed. They were up 2.5% by mid-morning. Investors had largely anticipated a guidance cut, after the company held off on assessing the damage of tariffs in the previous quarter. CEO Oliver Blume told investors the company must intensify its cost-cutting efforts in response to the tariffs. "We need to shift our cost efforts into high gear and accelerate implementation. After all, we cannot assume that the tariff situation is only temporary," Blume said. Volkswagen and its competitors are pressing European trade negotiators to strike a deal to reduce a 25% punitive tariff they have faced since April. EU diplomats have indicated that the bloc could be moving towards a broad 15% tariff as it seeks to avoid a 30% levy from August 1. A deal struck between the U.S. and Japan earlier this week raised hopes for a similar agreement for Europe, boosting carmakers' shares. Volkswagen finance chief Arno Antlitz said the company's profit margin would roughly land in the middle of its guidance with a Japan-style deal, which had a 15% tariff rate. He warned, however, that the clock was ticking on finding a deal. "We are already in July, so the longer we go into the second half of the year, the more we tend to the lower end of the guidance," he said. Antlitz declined to comment on price increases when pressed by investors on how the company planned to protect its margins against the tariffs. Volkswagen reported an operating profit of 3.8 billion euros in the quarter ended June 30, down 29% on the previous year, citing tariffs and restructuring costs, as well as higher sales of lower-margin all-electric models. While Volkswagen was able to boost deliveries globally by 1.5% in the first six months of 2025, the group saw a decline of almost 10% in deliveries to the U.S. North America sales revenue accounted for 18.5% of the carmaker's global sales in the first-half. Car sales data for June underpinned a broader slowdown in Europe's struggling auto sector - and showed Volkswagen among the laggards as the company undergoes a major overhaul to cut over 35,000 jobs by the end of the decade. Volkswagen Group includes VW's core-brand passenger cars as well as luxury brands Porsche (P911_p.DE), opens new tab and Audi, which are particularly exposed to Trump's tariffs given they have no production in the U.S. and rely heavily on exports. ($1 = 0.8515 euros)


Reuters
16 minutes ago
- Reuters
US stock futures pause after record S&P 500, Nasdaq run
July 25 (Reuters) - Wall Street futures held steady on Friday as investors took a breather following record closes for the S&P 500 and the Nasdaq in the previous session and awaited clarity on trade negotiations ahead of next week's tariff deadline. At 05:41 a.m. ET, Dow E-minis rose 61 points, or 0.14%, S&P 500 E-minis were up 5.75 points, or 0.09%, and Nasdaq 100 E-minis were down 1.75 points, or 0.01%. The blue-chip Dow fell 0.7% in Thursday's session, but remained close to its all-time high, last hit in December. All three major indexes were on track to end the week on a positive note as recent trade deals between the United States and its trading partners including Japan, Indonesia and the Philippines helped propel markets to new highs. An agreement with the European Union was in the pipeline, while talks with South Korea were underway as next week's August 1 deadline for many countries looms, with investors hoping that steep U.S. import levies could be averted. The recent climb to a series of record highs was also aided by upbeat second-quarter earnings. Of the 152 companies in the S&P 500 that reported earnings as of Thursday, 80.3% reported above analyst expectations, according to data compiled by LSEG. However, there were a few setbacks this week from heavyweights such as Tesla (TSLA.O), opens new tab, with CEO Elon Musk warning of rough quarters ahead in the wake of shrinking U.S. government subsidies for EVs. Intel (INTC.O), opens new tab dropped 6% in premarket trading on Friday after the chipmaker forecast steeper third-quarter losses than Wall Street had estimated and announced plans to slash jobs. Next week will feature the U.S. Federal Reserve's monetary policy meeting, with broader market bets pointing to a "hold" verdict by policymakers as they continue to assess the impact of tariffs on inflation. U.S. President Donald Trump - a staunch critic of Fed Chair Jerome Powell - made a rare presidential visit to the central bank's headquarters on Thursday, where he criticized its $2.5-billion renovation project. This marked another escalation in Trump's efforts to pressure Powell into cutting interest rates. The president has often mused in the past about firing the top policymaker and replacing him with someone more willing to cut borrowing costs. According to the CME FedWatch tool, traders are pricing in a 58.6% chance of a reduction in September. Among other stocks, Newmont (NEM.N), opens new tab added 2% after the gold miner surpassed Wall Street expectations for second-quarter profit. Meanwhile, Paramount Global (PARA.O), opens new tab rose 2% after U.S. regulators approved its $8.4 billion merger with Skydance Media.