Terry Precision Cycling reported incurring $25,000 in unexpected tariff costs this year, projecting total expenses could reach $1.2 million by 2026, which they deem unsustainable.

The lawsuit, filed in the U.S. District Court for the Northern District of Florida, represents a Florida-based company, Simplified, which relies on imported materials from China and claims the tariffs threaten its business.

A group of U.S. businesses filed a lawsuit on April 14, 2025, challenging President Trump's tariffs, claiming they violate the International Emergency Economic Powers Act (IEEPA).

To facilitate negotiations with allied countries, Trump modified the initial tariffs to a 10 percent rate for 90 days, although concerns among Americans and small business owners remain.

In a related move, Trump suggested he might temporarily exempt the auto industry from existing tariffs to help manufacturers adjust their supply chains.

The lawsuit emphasizes that only Congress has the constitutional authority to set tax rates, including tariffs, as pointed out by Jeffrey Schwab, senior counsel at Liberty Justice Center.

The tariffs in question were imposed even on countries without a trade deficit with the U.S., raising further questions about the administration's justification for these measures.

In retaliation to Trump's tariffs, several countries, including China, have enacted their own tariffs on U.S. goods, while others are exploring trade negotiations.

The White House defended the tariffs as necessary to protect American interests against unfair trade practices, particularly from China, with spokesman Harrison Fields asserting that trade deficits represent a 'national emergency.'

The plaintiffs in the lawsuit argue that the President's actions are illegal and emphasize the principle of 'no taxation without representation,' challenging the legitimacy of the tariffs imposed under the IEEPA.

As of now, the White House has not responded to requests for comments regarding the lawsuit, which seeks to declare the tariffs illegal.

The lawsuit specifically targets the tariffs imposed on April 2, 2025, known as the 'Liberation Day' tariffs, as well as additional duties on Chinese imports.