Post Reports: The Small-Business Owner Suing Trump Over Tariffs

Podcast Information:

• Title: Post Reports
• Host/Author: The Washington Post
• Episode: The Small-Business Owner Suing Trump Over Tariffs
• Release Date: May 19, 2025

Introduction

In this compelling episode of Post Reports, hosts Martine Powers and Elahe Izadi delve into the inspiring yet challenging journey of Emily Ley, the founder of Simplified, a small business specializing in high-end planners for busy women. The narrative unfolds as Emily takes a bold stand against the Trump administration's trade policies by initiating a lawsuit over imposed tariffs on goods manufactured in China.

Emily Ley and the Birth of Simplified

Emily Ley's entrepreneurial journey began in 2011 amidst the chaos of motherhood. Overwhelmed by the lack of simple and effective planners, she decided to create her own. Initially selling her planners on Etsy, Emily faced significant financial hurdles due to high production costs in the United States.

Emily Ley [04:10]: "What if I made a planner or a place to manage just my schedule, my to-do list, and it would be a planner that was simplified."

Despite her dedication, the high production costs in the U.S. forced her to look abroad for manufacturing solutions. By partnering with manufacturers in China, Emily was able to reduce production costs dramatically, allowing Simplified to grow and eventually sell planners in major retailers like Target.

Impact of Tariffs on Simplified

The turning point came in 2018 when President Trump implemented a 25% tariff on goods imported from China. For Simplified, this meant a sudden and substantial increase in production costs, severely impacting the company's financial stability.

Kat Zakreski [07:04]: "To grow, and suddenly this tariff was handed out, and it was... hundreds of thousands of dollars, and it was devastating."

Despite initial resilience, the continuation and escalation of tariffs under subsequent administrations left Emily and her team grappling with uncertainty and financial strain. By May 2025, Simplified had paid over $1.17 million in tariffs, but the fluctuating rates made long-term planning nearly impossible.

Emily Ley [09:25]: "We are paying the tariffs. I have signed the checks as a small business... I feel it is vital to transparently share this with you so you know firsthand how these tariffs impact small businesses."

Taking Legal Action Against the Trump Administration

Faced with insurmountable challenges, Emily Ley decided to take a stand by suing the Trump administration, arguing that the tariffs were unconstitutional. This legal battle marked a significant shift in her public persona, moving from a lifestyle blogger to a vocal opponent of federal trade policies.

Emily Ley [02:07]: "We are paying the tariffs... it wasn't partisan... just here's the details."

Emily's decision was not taken lightly, as it exposed her to potential backlash and uncertainty regarding her business's future. However, driven by a sense of responsibility and a desire to set an example for her children, she proceeded with the lawsuit.

The Legal Argument and Constitutional Concerns

Emily's legal team bases their argument on the premise that the Trump administration overstepped constitutional boundaries by using emergency powers to impose tariffs without proper legislative backing.

Kat Zakreski [21:45]: "The Constitution grants Congress the power to set taxes, but they’ve given government agencies power to set tariffs if they follow certain processes... This time, Trump used a statute called IAAPA, giving presidents broad authority to take economic action in emergencies."

This unprecedented use of emergency powers to implement tariffs raises critical questions about the separation of powers and the extent of presidential authority. The Trump administration has not directly addressed these constitutional overreach claims but has attempted to relocate the lawsuit to the United States Court of International Trade to seek a more favorable outcome.

Challenges and Future Implications

While legal experts believe Emily has a strong case, the journey is fraught with uncertainty. The possibility of securing a preliminary injunction to halt the tariffs is slim, and the legal process may extend into 2026 or 2027. Meanwhile, Emily faces immediate operational challenges, including:

• Production Delays: With planners dated 2027, decisions made in May 2025 are critical for inventory and sales.

  Emily Ley [12:15]: "We are about to sign purchase orders within the next 30 days for product that we're going to receive next January."

• Cost-Cutting Measures: To remain viable, Emily is exploring ways to reduce production costs without compromising product quality, including altering packaging and materials.

  Emily Ley [13:14]: "We've raised prices as much as we possibly can to still be competitive... we might have to consider more drastic measures like layoffs."

• Brand Reputation: As the lawsuit gains visibility, Emily worries about potential customer loss and the overall impact on her brand.

Despite these challenges, Emily remains steadfast in her commitment to the lawsuit, viewing it as a necessary fight for her business's survival and the broader implications for small businesses affected by similar trade policies.

Conclusion

Emily Ley's story is a poignant example of how federal policies can significantly impact small businesses. By taking legal action against the Trump administration, she not only seeks to save her company but also aims to challenge the systemic issues that place undue burdens on entrepreneurs. This episode of Post Reports highlights the intricate balance between governmental policies and their real-world implications on individual businesses, offering listeners a deep dive into the complexities of international trade and constitutional law.

Notable Quotes:

• Emily Ley [00:42]: "It really wasn't a decision of should I say something? It was like how do I say it?"
• Kat Zakreski [07:04]: "To grow, and suddenly this tariff was handed out, and it was... hundreds of thousands of dollars, and it was devastating."
• Emily Ley [09:25]: "We are paying the tariffs... it wasn’t partisan... just here's the details."
• Kat Zakreski [21:45]: "This raises questions about whether Trump is respecting the separation of powers as set up by the Constitution."
• Emily Ley [12:15]: "Once they expire, nobody wants to buy it."

This summary encapsulates the key discussions, insights, and conclusions from the episode, providing a comprehensive overview for those who haven't listened to the full podcast.