Tariffs lead to wave of US lawsuits

Cases test the extent of executive power

- TONY ROMM

Eventually, the containers of puzzle cards, child binoculars and other products will reach a port in the United States, and Mr Woldenberg will face a difficult and expensive decision. He can pay the sky-high tariffs that President Donald Trump has imposed on most foreign goods or forgo at least some of the much-needed inventory, perhaps imperilling his bottom line.

Mr Woldenberg expects to do a bit of both. But he has also opted for a more aggressive course of action, joining a growing roster of opponents now legally challenging Trump's ability to issue some of the tariffs in the first place.

Nearly four weeks into a costly global trade war with no end in sight, Trump is facing a barrage of lawsuits from state officials, small businesses and even once-allied political groups, all contending that the president cannot sidestep Congress and tax virtually any import at levels to his liking.

The lawsuits carry great significance, not just because the tariffs have roiled financial markets and threatened to plunge the United States into a recession. The legal challenges also stand to test Trump's claims of expansive presidential power, while illustrating the difficult calculation that his opponents face in deciding whether to fight back and risk retribution.

None of the lawsuits filed this month are supported by major business lobbying groups, even though many organisations — including the US Chamber of Commerce and the Business Roundtable — have been sharply critical of the president's tariffs and lobbied to lessen their impact. The chamber privately debated bringing a lawsuit, but ultimately decided it was “not the best course of action at this time,” said Neil Bradley, the executive vice president of the group.

“Engaging the administration in order to achieve a quick and immediate reduction in tariffs has the best chance of aiding businesses,” he said.

‘NOTHING TO LOSE’