Small Businesses Urge Supreme Court to Overturn Trump Tariffs

UPDATE: A coalition of small businesses is challenging President Donald Trump’s tariffs, urging the Supreme Court to rule against what they describe as an illegal tax on Americans. In a powerful brief filed on Monday, these businesses argue that the tariffs, based on the 1977 International Emergency Economic Powers Act, represent an unprecedented overreach of presidential power.

The brief, submitted in a case set to be heard on November 5, states that taxing Americans is an “odd way to combat foreign threats.” This legal battle is being framed as a classic David versus Goliath scenario, as the plaintiffs take on the federal government’s authority.

With the tariffs amounting to an estimated $3 trillion, the businesses assert that Trump’s actions violate the Constitution, which grants Congress the power to impose tariffs. They allege that recent legislation has allowed the executive branch to impose tariffs under specific circumstances, but the current situation exceeds that mandate.

A brief filed by a group of Democrat-controlled states supports the small businesses, declaring, “Congress, not the President, decides whether and how much to tax Americans who import goods from abroad.” They urge the Court to reject Trump’s attempt to centralize this power.

The Court of International Trade has previously ruled against Trump, stating that he does not possess “unbounded authority” to impose broad import taxes. This decision was upheld by the United States Court of Appeals for the Federal Circuit, making the upcoming Supreme Court ruling pivotal for the future of presidential power in economic policy.

This legal conflict carries significant implications. Members of the Trump administration have warned that overturning the tariffs could lead to devastating economic consequences, potentially jeopardizing millions of jobs and the future of vital programs like Social Security and Medicare. Solicitor General D. John Sauer emphasized that if the tariffs are ruled illegal, the government would face challenges in refunding collected taxes, complicating the fiscal landscape.

Treasury Secretary Scott Bessent also noted that the substantial sums already gathered could make it more challenging for the Supreme Court justices to rule against Trump.

As the nation awaits the Supreme Court’s decision, the stakes are high. The outcome will not only impact small businesses across the country but also set a precedent regarding the balance of power between Congress and the President.

Stay tuned for further developments on this significant legal battle as the November hearing approaches.