Trump Hit With Liberation Day Lawsuit

President Trump’s sweeping new tariffs, unveiled on what he dubbed “Liberation Day,” are now facing their first major legal challenge. A libertarian-leaning public-interest law group filed suit Monday, arguing that Trump exceeded his constitutional authority in unilaterally imposing the trade measures.

The tariffs, announced on April 2, established a baseline 10 percent tax on all imports, with steeper “reciprocal” tariffs aimed at dozens of specific countries. The move quickly sent shockwaves through financial markets, prompting a sharp dip in both stocks and bonds. In response to the backlash, Trump scaled back the steeper tariffs temporarily, reducing them to 10 percent for a 90-day period to allow for negotiations with affected nations.

The new lawsuit challenges the legal foundation of Trump’s actions, specifically targeting his use of the International Emergency Economic Powers Act (IEEPA). Passed in 1977, the IEEPA grants the president broad authority to respond to national emergencies involving foreign threats—but until now, it has never been used to justify imposing tariffs.

“Our constitutional system wasn’t designed to let a single person unilaterally set taxes across the global economy,” said Jeffrey Schwab, senior counsel at the Liberty Justice Center, the group bringing the suit. “If the president can use emergency powers this way for tariffs, it opens the door to even broader and more concerning uses down the road.”

Schwab warned that while tariffs may be the issue today, unchecked presidential authority could soon apply to other areas of economic control.

The Liberty Justice Center, which often represents conservative or libertarian causes, is working alongside Ilya Somin, a law professor at George Mason University’s Antonin Scalia Law School. Together, they aim to test the limits of executive power in court.

The outcome of this lawsuit could have far-reaching implications, not only for Trump’s aggressive trade agenda but also for how future presidents interpret and wield emergency economic powers.