Ship-to-shore cranes tower over the Port of Baltimore in Maryland on April 12, 2025. The trade tensions between the United States and China escalated as China raised tariffs on U.S. goods to 125%, following Trump’s recent increase of tariffs on Chinese goods to 145%. A lawsuit was filed by a group of U.S. businesses on Monday, challenging the legality of President Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA). The suit, brought by the Liberty Justice Center on behalf of five affected businesses, argues that the president exceeded his authority by unilaterally imposing tariffs without meeting the criteria of an “unusual and extraordinary threat” to national security or the economy as outlined in the IEEPA. The complaint contends that the power to set tax rates, including tariffs, belongs to Congress, not the President. This legal challenge is the latest in a series of lawsuits against Trump’s tariffs, with the New Civil Liberties Alliance (NCLA) also filing a complaint on behalf of a Florida-based company. The NCLA argues that Trump’s use of emergency powers to impose tariffs on imports from China exceeds his authority and disrupts the balance of powers established by the Constitution. CNN has reached out to the White House for comment on the matter, and the situation continues to evolve. Stay updated on this developing story by visiting CNN.com for more news and newsletters.