Austin, Texas, January 21, 2026
Over a dozen Texas-based companies, including Yeti Holdings Inc. and Valero Energy Corp., have filed lawsuits against the U.S. government in an attempt to contest the tariffs imposed by President Trump. The companies argue that the tariffs are unlawful and have negatively impacted their business operations. Filed under the International Emergency Economic Powers Act, the lawsuits claim that proper congressional authorization was not obtained and that the executive orders exceeded presidential authority. This legal action highlights the potential economic repercussions of the tariffs on Texas businesses reliant on international trade.
Texas Companies Challenge Presidential Tariffs in Federal Court
Austin, Texas – Over a dozen Texas-based companies, including prominent firms like Yeti Holdings Inc., Kendra Scott, and Valero Energy Corp., have initiated legal action against the U.S. government, contesting the tariffs imposed by President Donald Trump. These businesses argue that the tariffs, implemented through executive orders, are unlawful and have adversely affected their operations.
Details of the Lawsuits
The lawsuits, filed in the U.S. District Court for the Western District of Texas, challenge the legality of the tariffs under the International Emergency Economic Powers Act (IEEPA). The plaintiffs assert that the tariffs were imposed without proper congressional authorization and that the executive orders exceeded the president’s constitutional authority. The cases seek judicial relief to prevent the enforcement of these tariffs and to obtain refunds for duties already paid under the contested tariffs.
Impact on Texas Businesses
The tariffs have introduced significant uncertainty for Texas companies, many of which rely on international trade. The legal actions reflect a broader concern among businesses about the economic implications of the tariffs, including potential disruptions to supply chains and increased operational costs. The outcomes of these lawsuits could have substantial effects on trade policies and business operations within the state.
Background on the Tariffs
In April 2025, President Trump issued a series of executive orders imposing tariffs on various imports, citing national security concerns and trade imbalances. These actions have been met with criticism from business leaders and legal challenges, with companies arguing that the tariffs are detrimental to the U.S. economy and violate constitutional principles. The legal proceedings are ongoing, with courts set to determine the validity of the tariffs and their alignment with U.S. law.
Frequently Asked Questions (FAQ)
What companies are involved in the lawsuits against the U.S. government?
Over a dozen Texas-based companies, including Yeti Holdings Inc., Kendra Scott, and Valero Energy Corp., have initiated legal action against the U.S. government, contesting the tariffs imposed by President Donald Trump.
What is the basis of the legal challenges to the tariffs?
The lawsuits challenge the legality of the tariffs under the International Emergency Economic Powers Act (IEEPA), asserting that the tariffs were imposed without proper congressional authorization and that the executive orders exceeded the president’s constitutional authority.
What are the potential impacts of the tariffs on Texas businesses?
The tariffs have introduced significant uncertainty for Texas companies, many of which rely on international trade. Businesses are concerned about potential disruptions to supply chains and increased operational costs due to the tariffs.
When were the tariffs imposed by President Trump?
The tariffs were imposed in April 2025 through a series of executive orders issued by President Trump, citing national security concerns and trade imbalances.
What is the current status of the legal proceedings?
The legal proceedings are ongoing, with courts set to determine the validity of the tariffs and their alignment with U.S. law. The outcomes of these lawsuits could have substantial effects on trade policies and business operations within the state.
Key Features of the Article
| Feature | Description |
|---|---|
| Companies Involved | Over a dozen Texas-based companies, including Yeti Holdings Inc., Kendra Scott, and Valero Energy Corp., have initiated legal action against the U.S. government, contesting the tariffs imposed by President Donald Trump. |
| Legal Basis | The lawsuits challenge the legality of the tariffs under the International Emergency Economic Powers Act (IEEPA), asserting that the tariffs were imposed without proper congressional authorization and that the executive orders exceeded the president’s constitutional authority. |
| Impact on Businesses | The tariffs have introduced significant uncertainty for Texas companies, many of which rely on international trade. Businesses are concerned about potential disruptions to supply chains and increased operational costs due to the tariffs. |
| Tariff Implementation | The tariffs were imposed in April 2025 through a series of executive orders issued by President Trump, citing national security concerns and trade imbalances. |
| Legal Proceedings Status | The legal proceedings are ongoing, with courts set to determine the validity of the tariffs and their alignment with U.S. law. The outcomes of these lawsuits could have substantial effects on trade policies and business operations within the state. |
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
