Trump Tariffs Hit With Lawsuit by Group His Supreme Court Adviser Funded
By Shane Croucher and Khaleda Rahman
President Donald Trump faces a legal challenge over his tariffs from a libertarian group funded by billionaire legal activist Leonard Leo, who is credited with steering Trump through the Supreme Court's transition into a conservative majority.
The New Civil Liberties Alliance (NCLA) filed its complaint in Florida's federal courts on Thursday, arguing that Trump has no constitutional authority to impose tariffs via emergency powers.
White House spokesperson Harrison Fields told Newsweek that the president has "broad authority to impose tariffs to address issues of national emergency" and that the administration looks forward to a court victory.
Newsweek reached out to Leo for comment through an email to the Federalist Society, where he is co-chairman.
Why It Matters
Leo is a key financial backer of the NCLA. A longtime leader at the Federalist Society, Leo used his networks to help Trump nominate conservative Supreme Court Justices Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett.
The lawsuit is the first case that has challenged Trump's authority to impose tariffs since he returned to office. On April 2, he announced sweeping tariffs on almost all U.S. trading partners, sending global markets into a tailspin and sparking fears of a recession.
Leonard Leo
Leonard Leo, co-chariman of the Federalist Society board of directors, speaks at The Cambridge Union on March 11, 2025 in Cambridge, England. Nordin Catic/Getty Images for The Cambridge Union
What To Know
The NCLA's lawsuit was filed on behalf of Emily Ley, the founder of Simplified. This Florida-based small business sells stationary and home goods and depends on importing materials from China.
It argues that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on China.
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The lawsuit states that the statute "authorizes presidents to order sanctions as a rapid response to international emergencies. It does not allow a president to impose tariffs on the American people."
It argues that Congress has the power to impose tariffs and that presidents "can impose tariffs only when Congress grants permission, which it has done in carefully drawn trade statutes."
The lawsuit also argues that Trump has not shown how the tariffs are necessary to address the fentanyl epidemic that he cited as justification for imposing them.
Trump announced a 10 percent tariff on China in February before doubling it to 20 percent in March as punishment for fentanyl trafficking.
On Wednesday, Trump announced China would be hit with a 34 percent tariff on top of the 20 percent tariff previously imposed.
The tariffs will cost Simplified "hundreds of thousands of dollars," according to the lawsuit. Moving manufacturing operations away from China would impose further costs, it adds, and the company will likely be forced to raise prices or reduce staff.
What People Are Saying
Andrew Morris, senior litigation counsel at NCLA, said in a statement: "By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress's right to control tariffs, and upset the Constitution's separation of powers."
Emily Ley, the founder of Simplified, wrote on Facebook on Thursday: "These unlawfully implemented tariffs cause harm to Americans businesses, American jobs, and American consumers and will be the end of many American dreams."
White House spokesperson Harrison Fields told Newsweek: "President Trump has broad authority to impose tariffs to address issues of national emergency, such as the opioid pandemic. The Trump Administration looks forward to victory in court."
President Donald Trump on Monday threatened additional tariffs on China in response to China's announcement that it would retaliate against the U.S. tariffs Trump announced last week.
He wrote on Truth Social that "if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th. Additionally, all talks with China concerning their requested meetings with us will be terminated!"
What Happens Next
The lawsuit seeks a court order declaring that the China tariffs are unlawful and unconstitutional.
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