Trump sued over ‘Liberation Day' tariffs
Trump's April 2 announcement imposed a baseline 10 percent tariff on imports and targeted dozens of countries with higher 'reciprocal' tariffs.
The announcement has rattled stock and bond markets, and Trump later announced the steeper tariffs would be reduced to 10 percent for 90 days to allow time for negotiations.
Monday's lawsuit contests Trump's ability to impose the tariffs unilaterally by invoking the International Emergency Economic Powers Act (IEEPA). The 1977 law provides the president with the authority to impose necessary economic sanctions to combat an 'unusual and extraordinary threat,' but no previous president has leveraged it to impose tariffs.
'Our system is not set up so that one person in the system can have the power to impose taxes across the world economy. That's not how our constitutional republic works,' Jeffrey Schwab, senior counsel at Liberty Justice Center, which is leading the lawsuit, said in an interview.
'And so that is the thing that we're very concerned about. Because today it's tariffs, but could it be something else in the future,' Schwab continued.
The Liberty Justice Center, a libertarian public-interest firm that regularly represents conservative causes, filed the lawsuit in partnership with Ilya Somin, a law professor at George Mason University's Antonin Scalia Law School.
They did so on behalf of a group of five small businesses impacted by the tariffs: wine and spirits company VOS Selections, sportfishing e-commerce business FishUSA, electric toy designer MicroKits, pipe maker Genova Pipe and women's cycling apparel brand Terry Precision Cycling.
The suit was filed in the U.S. Court of International Trade, which has exclusive jurisdiction over certain lawsuits involving import transactions.
Four members of the Blackfeet Nation previously sued over Trump's Canada tariffs, including the Canadian aspects of his April 2 announcement. But Monday's suit is far broader and challenges Trump's 'Liberation Day' tariffs across the globe.
It adds to a lawsuit filed by the New Civil Liberties Alliance earlier this month challenging some of Trump's additional tariffs imposed on China.
'If starting the biggest trade war since the Great Depression based on a law that doesn't even mention tariffs is not an unconstitutional usurpation of legislative power, I don't know what is,' Somin said in a statement.
Updated 2:17 p.m.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 minutes ago
- Business Insider
8 million student-loan borrowers on Biden's SAVE plan now face interest charges again after a yearlong pause
President Donald Trump isn't saving the SAVE plan. The Department of Education announced earlier in July that interest charges for student-loan borrowers on the SAVE plan are restarting on August 1 after being paused for a year while the plan was facing legal challenges. SAVE, created by former President Joe Biden, intended to give borrowers more affordable monthly payments with a shorter timeline to debt relief. The plan was blocked in July 2024, and 8 million enrolled borrowers have been in a forbearance without interest accumulating. That relief is officially over. The department said that it is restarting interest charges on SAVE accounts to comply with the court order that blocked the plan, although the order did not explicitly provide instructions on handling the interest charges. Interest rates vary depending on when the loan originated. Today's undergraduate direct rate is 6.39%. Linda McMahon, Trump's education secretary, said in a statement that she recommends borrowers "quickly transition to a legally compliant repayment plan," like income-based repayment, to avoid balance growth. Some Democratic lawmakers previously criticized the interest charge restart and urged the administration to reverse course. On July 14, Sens. Elizabeth Warren, Bernie Sanders, and Chuck Schumer sent a letter to McMahon saying that the restart is "devastating for millions of American families." "It defies logic and the law that a months-old preliminary injunction against SAVE, which makes no mention of the interest-free forbearance, requires you to start charging interest to millions of borrowers in forbearance now," they wrote. The lawmakers also cited a backlog in income-driven repayment plan processing that would make it difficult for borrowers on SAVE to switch to a new plan. While the department said in its press release announcing the interest charges that borrowers who switch to a new plan "can expect quick and timely processing," the department in May reported a backlog of nearly 2 million income-driven repayment applications. The income-based repayment plan, which the department specifically mentioned as a viable option for SAVE borrowers, is also facing a debt relief processing delay. The department posted on Federal Student Aid that loan forgiveness through IBR plans is paused to update payment counts without providing a timeline for when relief will resume. For now, borrowers can choose to remain on SAVE while interest accumulates, or they can switch to a new plan and make payments. Due to Trump's spending law, student-loan borrowers will have two repayment options beginning July 2026: a standard repayment plan or a new Repayment Assistance Plan that forgives borrowers' balances after 30 years. The new plans are less generous than existing ones, including the SAVE plan, which Trump's spending law eliminates. These changes come amid Trump's broader plans to dismantle the Department of Education. The Supreme Court ruled that the department can proceed with firing nearly 1,400 workers, and limited staff means likely hurdles in carrying out the student-loan repayment overhaul.
18 minutes ago
Michael Whatley, RNC chairman endorsed by Trump, launches Senate bid in North Carolina
GASTONIA, N.C. -- Republican National Committee Chairman Michael Whatley launched his campaign for North Carolina's open U.S. Senate seat Thursday, equipped with President Donald Trump's endorsement and a large fundraising network for a potential general election bid against formidable Democrat Roy Cooper. A Whatley-Cooper contest is expected to be one of the most competitive and expensive 2026 races. Speaking at an event held at an old textile mill near Charlotte, Whatley pledged his allegiance to the president, who will be a major focus for both sides in a swing state where Trump had one of his smallest margins of victory last year. 'I am proud to stand with him and fight every single day for every family in every community,' Whatley said. 'President Trump deserves an ally and North Carolina deserves a strong conservative voice in the Senate. I will be that voice.' Whatley led the state Republican Party for almost five years before being elected Republican National Committee chairman 17 months ago with Trump's backing. He seeks to succeed GOP Sen. Thom Tillis, who barely a month ago announced that he would not run for a third term after clashing with Trump. Whatley's plan to run became public a week ago, after which Trump said on social media that Whatley would 'make an unbelievable Senator from North Carolina' and that he would have 'my Complete and Total Endorsement." Whatley got in the race after Lara Trump — the president's daughter-in-law, a former RNC co-chair with Whatley and a North Carolina native — passed on her own bid. The Democratic side of the race took shape earlier this week as Cooper, a former two-term governor, announced Monday that he would run. The next day ex-U.S. Rep. Wiley Nickel ended his campaign and endorsed Cooper. Cooper's entry brings optimism to a party aiming to take back the Senate in 2026 with a net gain of four seats — a tall task in a year when many Senate races are in states Trump won easily in 2024. National Republican campaign strategists say that Cooper's entry makes North Carolina a more difficult seat for the party to hold, though a Democrat hasn't won a Senate race in usually competitive North Carolina since 2008. Senate Majority Leader John Thune and National Republican Senatorial Committee Chairman Tim Scott endorsed Whatley immediately. At least two lesser-known Republican candidates are seeking the GOP nomination. Candidate filing begins in December, with any primaries held in March. But Whatley spent his launch speech targeting Cooper, accusing him of 'offering North Carolina voters an extreme radical-left ideology -- open borders, inflationary spending and a weak America.' 'I believe in a better North Carolina and a stronger America," he added. Trump, who narrowly won North Carolina's electoral votes all three times that he ran for president, also supported Whatley to replace national party chair Ronna McDaniel early last year. Whatley joked in April to an Iowa audience that Trump was so pleased with his work as chair that he offered Whatley any job that he wanted in Trump's administration, as long as he stayed on as chair. But with his campaign bid, Whatley will leave the chairman's post. RNC members are expected to vote on his successor next month in Atlanta. Trump has endorsed Florida state Sen. Joe Gruters, a former Florida Republican Party chairman who is now the RNC's treasurer and was co-chair of Trump's 2016 campaign in Florida. While never elected to government office and without a voting record, Whatley has promoted the president's agenda and led the party apparatus that helped him get elected in 2024. So he'll be asked repeatedly to defend a host of Trump initiatives. Whatley, 56, grew up in the western North Carolina mountains. His first major foray into politics came in high school when he volunteered for the 1984 reelection campaign of U.S. Sen. Jesse Helms. He earned law and theology degrees from the University of Notre Dame. Whatley was on a team of lawyers working on George W. Bush's behalf to dispute the outcome of the 2000 presidential contest. He landed a job in Bush's administration with the Department of Energy, followed by a two-year stint working for then-North Carolina Sen. Elizabeth Dole. He later lobbied for oil and gas companies. Whatley spent time during Thursday's speech highlighting what he considers Trump's many accomplishments, including recent Hurricane Helene recovery efforts in the state and a remake of the Republican Party. But Whatley also will have to defend portions of Trump's new law that includes pulling back on Medicaid, which North Carolina officials say threatens expansion coverage for hundreds of thousands of people. It was Cooper who reached a bipartisan agreement with state Republicans in 2023 to offer Medicaid expansion. Cooper's campaign criticized Whatley as 'a D.C. insider and big oil lobbyist who supports policies that are ripping health care away from North Carolinians and raising costs for middle class families.' In a news release, Cooper campaign manager Jeff Allen added that Cooper has a "record of putting partisanship aside to get results for North Carolina.' At the close of his tenure as state chairman, Whatley highlighted his efforts to encourage early voting and protect 'election integrity,' as well as online fundraising and volunteer training. He cited electoral victories for Republicans on North Carolina's appeals courts and within the General Assembly. But Democrats continued to control the governor's mansion, as Cooper won a second term in 2020.
Newsweek
32 minutes ago
- Newsweek
Mark Carney Responds to Donald Trump Raising Canada Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Canadian Prime Minister Mark Carney has said he is "disappointed" by President Donald Trump's move to increase certain tariffs on Canada from 25 to 35 percent. "President Trump has announced that the United States will increase its tariffs to 35 percent on those Canadian exports that are not covered under the Canada-United States-Mexico Agreement, or CUSMA," Carney said in a statement posted on X. "While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world's second-largest free trade agreement by trading volume." Trump announced the increase on Thursday, saying: "Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President's actions to address this unusual and extraordinary threat to the United States." While Carney said that Canada would continue to negotiate with the U.S., he added: "Canadians will be our own best customer, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. "We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians." Prime Minister Mark Carney with President Donald Trump in the Oval Office at the White House in Washington D.C. in May. Prime Minister Mark Carney with President Donald Trump in the Oval Office at the White House in Washington D.C. in May. Getty Images This is a developing story. More to follow.
