Small Businesses Lead Legal Battle Against Trump’s “Liberation Day” Tariffs

When Donald Trump announced sweeping “Liberation Day” tariffs in April, Learning Resources CEO Rick Woldenberg quickly began searching for legal support to challenge the move. Determined to protect his family’s decades-old educational toy business, Woldenberg joined forces with Akin Gump attorneys to take their case, Learning Resources v. Trump, to the U.S. Supreme Court. The case, along with two others—one filed by Democratic-led states and another by the Liberty Justice Center representing small firms like MicroKits and V.O.S. Selections—argues that Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) exceed presidential authority.

Trump’s tariffs, ranging from 10% to 50%, have generated about $100 billion for the U.S. but hit small businesses hardest. Large corporations have largely stayed out of the litigation, opting instead for lobbying and exemption strategies. According to economist John Horn of Washington University, major firms can absorb tariff shocks through larger cash reserves and flexible supply chains, while smaller firms face crippling uncertainty and higher costs.

For Woldenberg, the tariffs forced drastic cutbacks, including canceling a 600,000-square-foot expansion, freezing hiring plans, and slashing marketing budgets. “I predicted we’d be smaller and make less money—and both are true,” he said. MicroKits founder David Levi shared similar struggles. His small Virginia-based toy company saw growth stall after tariffs on Chinese imports surged above 100%, forcing him to cut production and staff hours. With key electronic parts unavailable domestically, Levi says U.S. manufacturing remains unrealistic.

Liberty Justice Center attorney Jeffrey Schwab said the response from small businesses nationwide has been “overwhelming.” Victor Schwartz, president of V.O.S. Selections, said his wine import business lost $200,000 due to the tariffs, calling his participation in the lawsuit a “moral imperative.” As the Supreme Court hears arguments, small businesses hope for a ruling that restores stability and fairness to U.S. trade policy.