Donald Trump’s tariff policy was derailed by a libertarian public interest law firm that received money from some of his wealthiest supporters.
The Liberty Judicial Center has filed a lawsuit against the US president’s “mutual” tariffs on behalf of five small businesses.
The Austin, Texas-based center “describes its status as a non-profit litigation company for libertarians seeking to protect financial freedom, private property rights, freedom of speech and other fundamental rights.
Previous backers of the company include billionaires Robert Mercer and Richard Wooline. Richard Wooline was also a financial backer for Trump’s presidential election.
Mercer, manager of hedge funds, is a key backer of Breitbart News and Cambridge Analytica, pouring millions of companies into both companies. He personally directed Cambridge Analytica to focus on the holiday campaign during the 2016 UK Brexit referendum, and the UK left the European Union.
For the Trump tariffs, the Liberty Judicial Center brought together five small businesses, including wine companies and fish gear and apparel retailers, claiming that Trump had acquired his enforcement rights and required Congressional approval to pass such a wide range of tariffs.
Another group that sued the Trump administration on its tariffs was a coalition of 12 Democratic National Generals who alleged that Trump inappropriately used the trade law International Emergency Economic Force Act (IEEPA) when enacting his tariffs.
It may seem strange to see a decision praised by liberals and conservatives during such a polarised period in US history. But Trump’s tariffs have proven controversial for members of both parties, especially after Wall Street appeared to have been dominated by the president’s trade war.
The US stock market fell at least 5% after Trump announced the toughest of his tariff policies. Recovery was quick after Trump paused many of his toughest tariffs until the end of the summer.
The shares began meeting Thursday morning after the panel’s verdict. The judge said the law Trump cited when enacting his tariffs does not “delegate unlimited customs authorities to the president.”
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The ruling does not affect certain tariffs on industries such as aluminum and steel, but it prevents the White House from implementing widespread retaliatory tariffs and its 10% baseline “mutual” tariffs. The White House is suing the ruling. This means that if the High Court decides to take on the case, the case could reach the U.S. Supreme Court.
Members of both groups who sued the Trump administration celebrated the verdict. “The president is affirming that he must act within the law and protecting American businesses and consumers from the destabilizing effects of volatile, unilaterally imposed tariffs,” Jeffrey Schwab, senior adviser at the Liberty Center for Justice, said in a statement. Oregon Democratic Attorney General Dan Rayfield helped the state with the lawsuit, but said he “reaffirms that our laws are important.”
In a statement, Victor Schwartz, founder of VOS Selection, a wine company represented by the Liberty Judicial Center in the lawsuit, said the control was a “winning” for his business.
“It’s a victory for my small business and for my small businesses all over the US and for that,” he said. “We are aware of the appeals already filed, and we are a firm believer in the case and will see it forever through the U.S. Supreme Court.”