First Lawsuit Filed Against Trump’s Tariffs; More Legal Challenges Likely

President Donald Trump’s sweeping new tariffs are facing their first legal challenge, with more likely to follow, as critics question the legality of his use of emergency powers to reshape U.S. trade policy.

Late Thursday night, the New Civil Liberties Alliance (NCLA), a nonprofit legal group, filed a lawsuit in the U.S. District Court in northern Florida. The suit targets Trump’s 20 percent tariffs on Chinese goods, which were imposed earlier this year under the justification of a national emergency.

Here is what you need to know

The Trump administration argues that China’s role in supplying fentanyl and its precursor chemicals to the U.S. constitutes a national emergency, giving the president authority to act under the 1977 International Emergency Economic Powers Act (IEEPA). The same law is being cited as the basis for additional “reciprocal” tariffs that Trump announced this week, which apply globally.

But the lawsuit claims that Trump’s use of the law to impose tariffs is unconstitutional. The U.S. Constitution grants Congress—not the president—the power to regulate trade and impose duties. Legal scholars say this could be the first serious test of a president’s ability to unilaterally use national emergency powers to change tariff policy.

“This is a highly unusual and potentially unlawful use of the IEEPA,” said legal experts familiar with the challenge, as per a report from Politico. “No other president has used it this way.”

More lawsuits likely coming

The NCLA lawsuit may only be the beginning. Several major business groups are reportedly considering their own legal action, particularly in response to Trump’s claim that the growing U.S. trade deficit qualifies as a national emergency.

Many of these groups argue that the new tariffs will disrupt global supply chains, increase consumer prices, and lead to retaliation from trade partners like China and the European Union. They also say it sets a dangerous precedent by expanding executive power over trade.

The outcome of these legal battles could have significant implications for U.S. trade policy and the separation of powers. If a judge rules that Trump’s actions under the IEEPA are unconstitutional, it could effectively block his efforts to unilaterally impose new duties — and potentially unravel the tariffs already in place.