TEXAS – The trade tariff policy of US President Donald Trump has come under legal fire from Liberty Justice Center (LJC), a legal firm backed by some of his own billionaire supporters.

The Texas-based nonprofit litigation firm, known for its libertarian stance, frequently advocates for economic freedom, property rights, and free speech.

LJC has filed a lawsuit against Trump’s “reciprocal” tariff policy on behalf of five small businesses that claim to have suffered economic harm due to the measure.

Notably, LJC has previously received funding from two prominent billionaires and former Trump campaign donors: Robert Mercer and Richard Uihlein.

Mercer, a former hedge fund manager, is also known as a key figure behind the far-right media outlet Breitbart News. He played a central role in the controversial political data firm Cambridge Analytica, which was involved in the UK’s 2016 Brexit campaign.

In its lawsuit, LJC argues that Trump overstepped his executive authority by imposing tariffs without congressional approval.

The five businesses represented in the suit span various sectors, including a winery and a fishing gear retailer.

A similar lawsuit has also been filed by a coalition of 12 Democratic State Attorneys General, who argue that Trump misused the International Emergency Economic Powers Act (IEEPA) as the legal basis for his policy.

A federal panel court ruling stated that the IEEPA does not grant “unlimited authority” to the president to impose tariffs, leading to a suspension of Trump’s broad tariff measures.

While specific tariffs on industries such as steel and aluminium remain in place, the court rejected the implementation of the 10% reciprocal tariff and other retaliatory trade actions by the White House.

The stock market reacted positively to the suspension of Trump’s tariff policy, although this was soon followed by an appeal.

LJC senior counsel Jeffrey Schwab said the ruling underscores the importance of legal constraints on presidential actions and protects businesses and consumers from unilateral tariff measures.

Oregon Attorney General Dan Rayfield, who led the states’ lawsuit, stated that the federal court’s decision affirms the rule of law as the foundation of governance.

Meanwhile, Victor Schwartz, founder of VOS Selections, one of the plaintiff wineries, hailed the decision as a victory for small businesses both in the US and globally.

“We understand the government has filed an appeal, but we believe in our case and are ready to take it all the way to the US Supreme Court,” he told The Guardian on Friday (30/5). (EF/KR/ZH)