Trump tariffs face Main Street lawsuit
Why it matters: Legal groups representing Main Street businesses want judges to block some tariffs as lawsuits against the levies make their way through the judicial system.
State of play: Bigger names in corporate America have been reluctant to take Trump on in court. A trade group representing major retailers has pulled back on a potential tariff lawsuit, Bloomberg reported this month. Its members were hesitant to proceed.
Small businesses, however, are involved in multiple lawsuits seeking to block Trump's tariffs. The legal groups that represent them admit it is impossible to know how — and how quickly — courts might respond.
The latest lawsuit, filed by Liberty Justice Center on Monday on behalf of five small businesses, alleges Trump does not have the power to impose across-the-board worldwide tariffs without congressional approval.
Between the lines: The White House relied on untested emergency powers to impose tariffs, a move that at least three lawsuits now argue is executive overreach.
Trump invoked authorities under the International Emergency Economic Powers Act (IEEPA), which gives the president wide-ranging powers in an emergency.
Trump signed executive orders that said that illegal drugs, undocumented immigration and "large and persistent" trade deficits constituted national emergencies.
Yes, but: IEEPA has never been used to implement tariffs since its creation in 1977.
"Even if you declare an emergency, it doesn't let you tax the American people. It doesn't let you impose a tariff," says Andrew Morris of New Civil Liberties Alliance, which filed a lawsuit against the China tariffs on April 3 in a Florida district court on behalf of a local retailer.
The other side: White House spokesman Harrison Fields told Reuters, "Never Trumpers will always oppose him, but President Trump is standing up for Main Street by putting an end to our trading partners — especially China — exploiting the U.S."
While the use of the emergency law to impose tariffs is unprecedented, courts have previously granted presidents other wide authorities under IEEPA.
What to watch: Liberty Justice Center tells Axios it is preparing to file for a preliminary tariff relief that, if granted, could result in suspended across-the-board tariffs
The risk is if a small business goes under before a judge rules on the tariffs that threaten the business.
"In six months or a year from now, these businesses could look really different and monetary damages aren't going to be able to make that up," says Jeffrey Schwab, the lead attorney on the case.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
EUWAX First Half 2025 Earnings: EPS: €1.22 (vs €0.60 in 1H 2024)
Explore EUWAX's Fair Values from the Community and select yours EUWAX (FRA:EUX) First Half 2025 Results Key Financial Results Revenue: €23.1m (up 24% from 1H 2024). Net income: €6.28m (up 103% from 1H 2024). Profit margin: 27% (up from 17% in 1H 2024). The increase in margin was driven by higher revenue. EPS: €1.22 (up from €0.60 in 1H 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period EUWAX shares are up 1.2% from a week ago. Risk Analysis Be aware that EUWAX is showing 2 warning signs in our investment analysis that you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10 minutes ago
- Yahoo
US budget deficit forecast $1 trillion higher over next decade, watchdog says
By David Lawder WASHINGTON (Reuters) -U.S. federal budget deficits will be nearly $1 trillion higher over the next decade than projected in January by the Congressional Budget Office as a result of tax and spending legislation and tariffs, a budget watchdog said on Wednesday. The Committee for a Responsible Federal Budget's latest forecasts show a cumulative deficit of $22.7 trillion from fiscal 2026 to 2035, compared to the CBO's January forecast of $21.8 trillion, which was based on laws and policies that were in place before U.S. President Donald Trump took office in January. The CBO, Congress' non-partisan budget referee agency, said on Monday that it will not issue its customary mid-year budget update this year and will issue its next 10-year budget and economic outlook in early 2026, offering no explanation for the move. The CRFB, which advocates for deficit reduction, projected a $1.7 trillion deficit in fiscal 2025 or 5.6% of GDP, down slightly from $1.83 trillion in 2024 and the CBO's 2025 projection of $1.87 trillion in January. But it said deficits steadily rise over the decade, reaching $2.6 trillion or 5.9% of GDP by 2035. The new CRFB estimates include the budget effects of the One Big Beautiful Bill Act tax and spending bill, as well as Trump's tariffs that are currently in place. But like CBO, they do not include the dynamic economic effects on growth from these changes, a forecasting rule that has drawn criticism from the Trump administration. The group projects the tax cut and spending bill to increase deficits, including interest, by $4.6 trillion through 2035, adding another year to the CBO's $4.1 trillion cost estimate through 2034. But CRFB estimates that this will be offset by $3.4 trillion worth of extra import duty revenue over the next decade due to Trump's new tariffs that are currently in place. New rules restricting eligibility for health insurance subsidies will reduce deficits by another $100 billion through 2035, and Congress' rescission of prior funding to foreign aid, public broadcasting and other programs would save another $100 billion if sustained over a decade, CRFB said. Net interest payments on the national debt will total $14 trillion over the decade, CRFB projected, rising from nearly $1 trillion or 3.2% of GDP in 2025 to $1.8 trillion or 4.1% of GDP in 2035. TARIFF CHALLENGE The forecasts are based on legislative and tariff changes since January but keep CBO's economic forecasts unchanged. Under an alternative scenario forecast by CRFB, the budget picture looks far worse, boosting deficits nearly $7 trillion higher than the CBO baseline. This scenario would see a significant part of Trump's tariffs canceled if the Court of International Trade's ruling against many of Trump's new tariffs is upheld, cutting $2.4 trillion from revenues over a decade. The alternative scenario also assumes extension of a number of temporary tax cuts in the One Big Beautiful Bill Act, including tax breaks on overtime, tips, Social Security income and car loan interest, higher state and local tax deduction allowances and full expensing of factory investments, adding $1.7 trillion to deficits over 10 years. CRFB's alternative scenario also ditches the CBO's projection of a decline in 10-year U.S. Treasury yields over the decade to about 3.8%. If that interest rate stays at the current level of about 4.3%, interest costs would grow by about $1.6 trillion through 2035, CRFB said. The total 2035 debt-to-GDP ratio would grow from 118% in the CBO January baseline to 120% under the CRFB's projected baseline scenario and 134% under the CRFB's alternative scenario. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 minutes ago
- Yahoo
Wary diners shun restaurants, raising prospect of boost for retailers
By Paolo Laudani (Reuters) -Cash-conscious consumers choosing to eat in rather than dine out have raised the prospect of an upturn in earnings for supermarkets and food delivery firms, according to data, analysts and company executives. U.S. President Donald Trump's tariff policies have added to economic uncertainty, increased the likelihood of stubborn inflation and made consumers question whether restaurants are worth the expense. "I eat much more at home because first of all eating out is way more expensive lately, and quality is not always guaranteed," Marilena Graziano, a Florence-based teacher, told Reuters. Dutch retailer Ahold Delhaize, owner of the Food Lion and Giant stores in the United States, said earlier this month that it was increasing its offers tailored to low-cost eating in. "We have solutions for customers to have a very affordable meal of $2.50 per person at home with the family," Ahold's CEO Frans Muller said in an interview this month. "We have increased a lot of that proposition in our stores." The shift hints at a revival of the boom in eating at home during the COVID-19 pandemic when people could not go out. Home delivery companies such as Just made record sales, although they struggled once lockdown restrictions were lifted. Figures from Rabobank and Eurostat show that food retail sales volumes adjusted for inflation in supermarkets, hypermarkets and similar stores grew by 1.5% in the Eurozone between January and May this year. That compares with 0.1% growth over the same period last year. For food and beverage services, such as restaurants and bars, the metric fell by 0.3%. Last year's growth was flat at 0%. RESTAURANTS LAG The inflation-adjusted figures suggest that sales at supermarkets are recovering faster than at restaurants, especially for routine weekday meals, Rabobank's consumer foods sector analyst Maria Castroviejo told Reuters. Castroviejo cited the rising popularity of grab-and-go meals, salads, wraps, and sandwiches. "This offer has increased and improved a lot and we know that this is taking away some demands from certain foodservice players," she said. Delivery Hero, which owns Glovo and Foodpanda, said that consumers go out less during times of economic hardship, but will order in as a cheaper alternative. A survey of more than 5,000 U.S. adults commissioned by Hellofresh, a German meal-kit maker that makes most of its revenue in North America, showed 93% of them expect to cook as much as last year or more in the next year. Among those who plan to cook more at home in the next year, more than three-quarters say the economy is a factor. Visits to grocery stores have steadily outpaced those to restaurants and bars in the U.S., data from foot traffic tracking firm showed. The data showed visits to grocery stores grew by 1.3% year-on-year in June, while they fell 0.4% in the same months for restaurants. Jenny Russmann, who works for an international organisation in Vienna, is among those using supermarkets more. "I switched to eating at home a bit over a month ago due to wanting to just be healthier and especially also costs." In Milan, Chiara Schiavoni, employed at the regional administration, said she prefers to eat at home as prices rise and restaurants' portions shrink in Italy's financial capital. "I get seven-euro food vouchers at work and I can't even buy a sandwich, which costs around nine euros in restaurants around my office," she said. "On the other hand, I can use them in supermarkets where all in all it's more convenient." ($1 = 0.8566 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
