Federal Court Ruling Triggers Lawsuit Over Trump’s Unlawful Tariffs, Exposing Economic Harm to U.S. Businesses

 

Donald Trump Ends the Week Engulfed in Legal and Economic Fallout

Donald Trump’s week closed in turmoil as a class-action lawsuit demands the return of tariffs collected since the so-called "Liberation Day"—tariffs that a federal court has now ruled unlawful. The legal and economic structure propping up Trump’s tariff scheme is crumbling.

Filed by Las Vegas-based skincare company Chapter1 LLC, the lawsuit highlights the broader implications of the recent U.S. Court of International Trade ruling. The court unanimously declared Trump’s use of the International Emergency Economic Powers Act to impose tariffs unconstitutional.

“Hundreds of thousands of other American businesses have exactly the same claim, based on exactly the same legal theory, against the United States,” the suit states. “Each importer has a claim against the United States for repayment of the tariffs it paid.”

Chapter1 LLC says it was hit with approximately $23,000 in tariffs after importing a serum and toner mixing machine from China. The device itself cost just $16,000. According to the suit, company owner Ali Shaubzada had to take out a personal loan to cover the sudden expense—having already depleted his savings and credit to purchase the machine.

Since this is a class-action suit, it aims to recover billions in unlawful tariffs paid by small businesses across the country.

The reality is stark: Trump’s reckless trade policies didn’t punish foreign governments—they punished American entrepreneurs. Now, businesses are rising up through the courts to demand accountability and relief. The damage Trump inflicted wasn’t just theoretical—it hit real people, hard. And now, justice may finally be catching up.