US Companies Angry Over 'Trump Tariffs'... Public Criticism and Lawsuit Consideration

"Legal experts agree it is illegal... Lawsuits are expected"
"Tariffs are making me a Democrat," criticism mounts
Most remain wary of Trump... Legal battle seen as unlikely

As U.S. President Donald Trump announced reciprocal tariffs against countries worldwide, escalating the trade war, American companies cornered by the situation have begun making public statements against President Trump and are even considering lawsuits, the Wall Street Journal (WSJ) reported on the 8th (local time).

Before the tariff announcement, companies discussed the matter with Trump administration officials but achieved little progress. Immediately after the tariff announcement, they focused on conveying industry opinions through trade groups and lobbyists. Some companies arranged meetings with Trump administration officials. However, having gained no significant results, they are now even contemplating the litigation card.

WSJ cited multiple sources reporting that the U.S. Chamber of Commerce and industry representative groups are discussing whether to file lawsuits. Sources said the U.S. Chamber of Commerce is considering filing a lawsuit alongside groups such as the Consumer Technology Association, claiming that President Trump improperly applied the International Emergency Economic Powers Act (IEEPA), enacted in 1977, to impose tariffs.

The U.S. Chamber of Commerce and the Consumer Technology Association declined to comment on the possibility of litigation. Neil Bradley, Chief Policy Officer, said, "Like everyone else, we have many questions about the legality of these tariffs," adding, "Everyone is trying to figure out what the exit strategy for these tariffs is. The economic consequences will be so severe that no one can believe this is the new normal."

Gary Shapiro, CEO of the Consumer Technology Association, said, "Lawyers seem to agree that this is illegal," and added, "There will be lawsuits. And Congress will have no choice but to take action."

Last week, a planner manufacturer in Florida using Chinese-made materials challenged some tariff measures with the liberal legal advocacy group New Civil Liberty Alliance. The public interest legal group Liberty Justice Center is recruiting plaintiffs for lawsuits.

US President Donald Trump announced reciprocal tariffs on the 2nd (local time). Photo by Reuters

In addition to the U.S. stock market plummeting over the past three days, Wall Street heavyweights such as Bill Ackman, chairman of Pershing Square Capital, and Jamie Dimon, chairman of JPMorgan Chase, have publicly warned of a recession, prompting previously silent business leaders to speak out.

Ken Griffin, CEO of hedge fund Citadel, called the tariffs "a tremendous policy mistake" at an event held at the University of Miami the previous evening. He criticized, "He is making groceries, toasters, new vacuum cleaners, and new cars cost 20%, 30%, 40% more," adding, "Even if the dream of jobs returning to America is realized, it will be a dream 20 years from now."

Ray Dalio, founder of Bridgewater Associates, said in an interview with CNBC that "while he agrees there is a problem with the U.S. not producing enough products, he is very concerned about the solution," pointing out that President Trump's tariff policy will increase corporate costs and reduce profits.

Bahram Arkadi, CEO of premium fitness chain Life Time Group Holdings, said, "Tariffs are not a beautiful word in the global economy," adding, "You cannot apply such deadlock and such great friction to world trade."

Pro-Trump CEOs are also voicing their opinions. Ryan Cohen, CEO of GameStop, recently wrote on social media platform X (formerly Twitter), "Tariffs are making me a Democrat," joking, "I can't wait for a $10,000 iPhone made in America." Nintendo announced it is indefinitely suspending pre-orders for the Nintendo Switch 2 in the U.S. due to tariffs, and GameStop has already suffered losses from tariffs.

However, the majority of CEOs are still cautious, fearing retaliation and watching the Trump administration closely. In fact, it is expected to be difficult to file a lawsuit against President Trump. Lobbyists related to the Trump administration warned that publicly opposing the tariffs could provoke backlash and cause the administration to double down on its tariff strategy.

Jeffrey Sonnenfeld, professor at Yale School of Management, said he has heard from several major publicly traded company CEOs expressing frustration and believes trade groups should oppose the tariffs more strongly or lead collective statements. However, he noted that business leaders are reluctant to speak out due to fear of retaliation from the Trump administration. Professor Sonnenfeld said, "They do not want to be personal lightning rods."