Could Trump’s “Liberation Day” Tariffs Be Overturned? Legal Challenges Heat Up

On April 15, 2025, legal challenges emerged against former President Donald Trump’s contentious tariffs, known as the “Liberation Day” tariffs. These tariffs, which have sparked debate across political and economic landscapes, are now facing scrutiny from unexpected quarters. Conservative groups traditionally aligned with Trump are at the forefront of these legal battles, arguing that the executive branch overstepped its authority. This situation has created a unique moment in U.S. trade policy history, with potential implications for global markets.

The Tariffs in Question

At the heart of the controversy are tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Initially targeting China, Canada, and Mexico, these tariffs expanded to include a 10% baseline rate on most imports, with some duties exceeding 145% on Chinese goods. While framed by Trump as measures to protect American industries, critics warn of significant economic risks. Economists and business leaders have expressed concerns about inflationary pressures and disruptions to supply chains, raising fears of a potential recession.

The Legal Battle

Two key lawsuits are challenging the legality of these tariffs. The Liberty Justice Center, a conservative nonprofit, filed a case on April 14, 2025, contending that Trump exceeded the scope of IEEPA. According to their argument, the law does not explicitly grant the president authority to impose tariffs. Similarly, the New Civil Liberties Alliance (NCLA) filed a lawsuit earlier on April 3, 2025, representing a Florida-based stationery company. Their case asserts that IEEPA was designed to address sanctions, not serve as a tool for trade policy.

Even figures typically supportive of Trump have voiced opposition. One plaintiff remarked that trade deficits do not constitute a national emergency, highlighting the struggles faced by small businesses importing goods from regions like the EU, South Africa, and Lebanon. This dissent underscores an unusual rift within Trump’s traditional base.

Why This Matters

Legal experts anticipate that this issue could escalate to the Supreme Court. Following the 2024 Loper Bright v. Raimondo ruling, which curtailed federal agencies’ power, a court decision invalidating IEEPA’s application to tariffs might dismantle Trump’s entire policy framework. In response to mounting pressure, Trump paused the highest tariff rates for 90 days starting April 9, though the 10% baseline remains intact. White House adviser Kevin Hassett hinted that this lower rate could persist long-term, causing concern among industries ranging from automotive to pharmaceuticals.

Key Players and Reactions

Donald Trump continues to defend the tariffs as essential for maintaining U.S. competitiveness. However, prominent figures such as Elon Musk and Jamie Dimon have joined economists in cautioning against potential economic repercussions. The involvement of conservative lawyers in opposing the tariffs highlights a rare ideological conflict regarding executive power, further complicating the political landscape.

What’s Next?

Courts may dismantle the tariffs incrementally, targeting specific countries, or issue a comprehensive ruling invalidating the entire policy. Regardless of the approach, the outcome will test the boundaries of presidential authority and redefine global trade dynamics. Businesses remain uncertain as they navigate the ongoing legal battles, which could culminate in a Supreme Court decision. With high stakes involved, the resolution of this issue will likely establish new precedents for executive power in trade policy.

Sources: Forbes, ABC News, court filings