Small Businesses Seek Emergency Halt To Trump’s “Liberation Day” Tariffs

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Small Businesses Seek Emergency Halt To Trump’s “Liberation Day” Tariffs

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The Liberty Justice Center filed an application for a temporary restraining order and a motion for a preliminary injunction on Friday, seeking to immediately block the enforcement of the recently imposed “Liberation Day” tariffs.

The legal challenge, brought on behalf of five small businesses, argues that the tariffs are inflicting significant and irreparable harm and were unlawfully implemented.  

The motion was filed in the U.S. Court of International Trade as part of the ongoing case, V.O.S. Selections, Inc. v. Trump, which was initially lodged on April 14, 2025. According to the Liberty Justice Center (LJC), the five small business plaintiffs are facing devastating consequences as a result of the tariffs imposed on a range of imported goods.

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“These tariffs are devastating small businesses,” said Jeff Schwab, an attorney with the Liberty Justice Center. “We are asking the court to act swiftly to declare these tariffs unlawful and protect these businesses from further harm.”

The lawsuit directly challenges the Trump administration’s justification for the “Liberation Day” tariffs, as well as previous tariffs on goods from Mexico, Canada, and China, which were imposed under the authority of the International Emergency Economic Powers Act (IEEPA).

The LJC contends that the IEEPA permits the President to invoke emergency economic powers only in response to a declared national emergency stemming from an “unusual and extraordinary threat” to national security, foreign policy, or the U.S. economy originating from outside the United States.  

The core of the legal challenge lies in the argument that the administration’s stated justification – a trade deficit in goods – does not constitute an emergency or an unusual and extraordinary threat under the IEEPA.

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LJC asserts that trade deficits have been a long-standing feature of the U.S. economy and do not rise to the level of a national emergency or security threat. Furthermore, the lawsuit points out that tariffs have been levied even against countries with which the U.S. does not have a trade deficit, further undermining the administration’s rationale.  

The motion for a temporary restraining order and preliminary injunction emphasizes that the plaintiff businesses will suffer irreparable harm if the tariffs remain in effect while the lawsuit proceeds. It also argues that the plaintiffs are likely to succeed on the merits of their case, suggesting that the court will ultimately find the tariffs to be unlawful.

The filing also presents the court with the option to treat the motion as one for summary judgment, potentially leading to a swift and permanent injunction against the tariffs.

The court’s decision on the request for immediate injunctive relief is highly anticipated, as it will have significant implications for small businesses across the United States that rely heavily on imported goods for their operations.

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