‘Princess Awesome’ May Challenge Trump’s Tariffs Legally
Princess Awesome’s Battle Against Tariffs
It’s a clash reminiscent of a superhero story: Princess Awesome, a Maryland-based online store, is taking on what they refer to as “Tariff Man.” This lawsuit reflects a larger struggle where small businesses are grappling with the economic implications of unilateral tariffs imposed by the government.
Who is Princess Awesome?
Princess Awesome LLC specializes in unique, nerd-themed apparel for both children and adults. Recently, this company has become a prominent figure in a lawsuit against President Donald Trump’s use of tariff powers. This legal action highlights concerns from several companies, including sellers of tabletop games and other retailers that rely heavily on imported goods.
The Impact of Tariffs on Small Businesses
Tariffs are essentially taxes imposed on imported goods. Many small business owners fear the financial burden these tariffs create. According to Rebecca Melsky, cofounder of Princess Awesome, tariffs lead to increased product prices. In a recent blog post, she explained how larger corporations might absorb the financial impact more easily, but smaller businesses struggle to pass these costs on to their customers without losing sales. She noted that Princess Awesome has already paid over $1,000 in tariffs this year and anticipates further payments on upcoming shipments from countries like Bangladesh, India, and Peru.
The Broader Group of Plaintiffs
Princess Awesome isn’t alone in this lawsuit. Other plaintiffs include Stonemaier Games, a board game company. They claim that their upcoming tariff expenses could reach millions due to the 10 percent tariff imposed on imports. Jamey Stegmaier, cofounder of Stonemaier Games, expressed frustration with the situation, stating that they face a $14.50 tariff for every $10 spent on manufacturing in China, reflecting how the tariffs could seriously impact their business model.
Legal Grounds of the Lawsuit
The legal action was initiated in the U.S. Court of International Trade by the Pacific Legal Foundation. The lawsuit argues that President Trump overstepped his authority under the International Emergency Economic Powers Act (IEEPA) when he announced a universal tariff on all imports. Lawyers assert that IEEPA only allows for tariffs in response to “unusual and extraordinary threats,” a category the current state of free international trade does not fall into.
Challenges to Trump’s Tariffs
This lawsuit is part of a larger movement. Alongside the complaint from Princess Awesome and other small businesses, a coalition of 12 states has also filed a separate lawsuit, challenging the constitutionality of Trump’s tariffs. New York Attorney General Letitia James stated that no president should have the power to raise taxes without proper legislative procedures, implying that the tariffs being imposed are equivalent to an illegitimate tax hike.
The Arguments Against Tariffs
Critics across various sectors argue that the tariffs are damaging not just to small businesses, but the greater economy as well. Imported goods such as board games and clothing do not justify hefty tariffs under the pretense of national security or any significant economic threat. Moreover, these consumer products play a vital role in the marketplace, and unfavorable changes can lead to increased prices or reduced availability.
The Future of Tariffs and Small Businesses
Both the businesses involved in the lawsuit and the states challenging the tariffs believe these levies are not just economically unwise, but also legally questionable. They argue for swift judicial action to reconsider these tariffs, aiming to protect small businesses from arbitrary taxation by the federal government. As this legal journey unfolds, the economic landscape for small and large businesses alike is at stake, potentially reshaping how tariffs are handled in the future.
