NEW YORK (BRAIN) — Terry Precision Cycling is one of five owner-operated businesses suing the Trump administration, saying it lacks authority to issue increased tariffs.
Filed in the U.S. Court of International Trade, the lawsuit filed by the Liberty Justice Center on behalf of Terry and the others on Monday, argues that "the President of the United States claims the authority to unilaterally levy tariffs on goods imported from any and every country in the world, at any rate, calculated via any methodology — or mere caprice — immediately, with no notice, or public comment, or phase-in, or delay in implementation, despite massive economic impacts that are likely to do severe damage to the global economy."
Among other requests for relief, the suit asks for damages in the amount of any tariffs collected by the administration; payment of plaintiff attorneys' fees; and any other damages and relief the court deems appropriate.
Terry Precision Cycling is based in Vermont and specializes in women's cycling apparel. It was affected by the 2019 tariffs. The increased tariffs announced April 2, but paused for 90 days a week later, threaten the company's survival, according to Nik Holm, Terry president.
"Even before this year's increases, we were already paying tariffs of up to 39.5%," Holm said in a Liberty Justice Center news release announcing the lawsuit. "With the additional 145% now imposed, we can't survive long enough to shift course. Twenty years ago, we made all our apparel in the U.S. but gradually moved production overseas to sustain our business. Bringing manufacturing back would require a long-term strategy supported by consistent government policies, investment in factories with skilled sewers, and access to raw materials that are not subject to high tariffs. Many of our products rely on raw materials that are simply not produced in the U.S."
The lawsuit argues that while Trump invoked the International Emergency Economic Powers Act to justify the additional tariffs, under law he can only do so after declaring a national emergency in response to national security, foreign policy, or the U.S. economy originating outside the U.S. Furthermore, according to the suit, the justification of a trade deficit in goods is neither an emergency nor an unusual or extraordinary threat. Trade deficits have existed for decades, and do not constitute a national emergency or threat to security, according to the lawsuit, and the administration also imposed tariffs even on countries that the U.S. does not have a trade deficit, further undermining the administration's justification.
While he paused the added tariffs, Trump increased those on China to 125% and kept a new 10% tariff in place on the rest of the world.
The other plaintiffs are:
- VOS Selections, a 39-year-old New York-based business specializing in the importation and distribution of small-production wines, spirits, and sakes.
- FishUSA, Inc., a 25-year-old retail and wholesale e-commerce business specializing in the production and sale of sportfishing tackle and related gear. Like much of the tackle industry, it sources many of its products from abroad, including Canada, China, South Korea, and Kenya.
- Genova Pipe, a privately held company in Salt Lake City, manufactures ABS pipe in the U.S. using imported ABS resin from South Korea and Taiwan. The tariffs have increased raw material costs, impacting their Washington state factory, which primarily exports to Canada.
- MicroKits LLC, a small business based in Charlottesville, Virginia, that makes educational electronic kits and musical instruments. The company imports electronic components from China, Mexico, Taiwan, and Thailand, then assembles and finishes the products in its local workshop.
In addition to Trump, others named in the suit are Pete R. Flores, the U.S. Customs and Border Protection acting commissioner; Jamieson Greer, the U.S. Trade Representative ambassador; and Howard Lutnick, the Secretary of Commerce.
In 2021, the Flagg Bicycle Group acquired Terry Bicycles and renamed it Terry Precision Cycling.
