In just under six months, the Trump administration’s second term has sparked a flood of lawsuits, but one case targeting President Donald Trump’s sweeping tariffs stands out for its broad, bipartisan backing. Unlike the expected opposition from immigration advocates and Democratic leaders, this challenge is also supported by prominent conservative organizations, economists, and even former allies like Mike Pence’s Advancing American Freedom.
At the heart of the lawsuit is the administration’s aggressive use of tariffs—10% on nearly all imports, 25% on most goods from Canada and Mexico, and 50% on steel and aluminum. Critics argue these tariffs exceed executive authority and represent unconstitutional taxation, pointing to the Constitution’s assignment of tax powers to Congress. The administration counters that long-standing national emergency powers grant the president broad leeway over trade and tariffs in the interest of national security.
Economists from a range of institutions, including the American Enterprise Institute, Harvard, and MIT, argue that tariffs do more harm than good. They claim higher costs are passed on to American consumers, undercutting purchasing power and business competitiveness. They also dispute the idea that trade deficits alone justify national emergencies, calling them common and generally harmless byproducts of global trade.
Samuel Gregg, president of the American Institute for Economic Research, warned that tariffs foster crony capitalism by incentivizing large companies to lobby for exemptions and protective measures. Critics say this opens the door to government favoritism and corruption under the guise of economic patriotism.
Despite the backlash, the administration defends the tariffs as vital for protecting domestic industry and balancing trade deficits. Trump has praised the tariffs for generating record revenues and claimed they will ultimately restore American manufacturing strength. The case is now under review by the U.S. Court of Appeals for the Federal Circuit after an earlier ruling found the tariffs unlawful.
