Florida Business Sues Donald Trump Over Tariffs

A Florida stationary company is suing president Trump for his China tariffs.

Why It Matters

Trump has imposed 125 percent tariffs on Chinese goods, and on March 10, China retaliated with 84 percent tariffs on American goods.

Unless the courts intervene, the trade war could have a profound effect on the U.S economy, which relies heavily on Chinese imports.

Newsweek sought email comment from the Department of Homeland Security on Thursday.

What To Know

Pensacola-based Simplified, and its CEO, Emily Ley, are suing Trump and Homeland Security secretary, Kristi Noem.

Simplified alleges that Trump's tariffs will cost it hundreds of thousands of dollars a year.

The company makes female-focused planners, notepads and notebooks in China and exports them to the U.S.

In a lawsuit filed in Florida federal court on April 4, it complaints that "the tariffs imposed by the China Executive Orders will greatly damage Simplified because it imports material from China each year, from December to March."

"Simplified has to pay tariffs as orders are received in the United States. Under current plans, the new tariffs will impose hundreds of thousands of dollars in costs on Simplified."

"If it moves its manufacturing operations away from China, this would impose further costs. Either course would require Simplified to raise its prices to its customers and either reduce its already small staff or not hire more staff."

"Any raised prices for Simplified's products will likely reduce demand for those products," the lawsuit states.

The case is being taken with the help of the nonpartisan group, The New Civil Liberties Alliance, which helps fight needless bureaucracy.

The lawsuit states that Trump's tariffs are illegal because he is using the International Emergency Economic Powers Act of 1977 [IEEPA] and the act "does not authorize a president to impose tariffs," according to the lawsuit.

In addition, it challenge's Trump's claims that he has to use the IEEPA to impose tariffs as a way of fighting drugs imported from China.

The lawsuit states that Trump does not meet the IEEPA requirement that he show the tariffs are "necessary" to address the stated "emergency" of illegal opioids.

Trump previously extended his blanket tariff on Chinese goods to 20, citing Chinese exports of illicit fentanyl as justification.

What People Are Saying

Andrew Morris, Senior Litigation Counsel at the New Civil Liberties Alliance, said in a statement that "by invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Donald Trump has misused that power, usurped Congress's right to control tariffs, and upset the Constitution's separation of powers."

President Donald Trump wrote on his social media site, Truth Social, on April 9: "At some point, hopefully in the near future, China will realize that the days of ripping off the USA and other countries is no longer sustainable or acceptable."

What Happens Next

The Florida court will first have to rule on the plaintiffs' request for a temporary injunction on Trump's tariffs while it considers the merits of the case.

It will then have to consider whether to impose a longer-lasting preliminary injunction.