US Businesses Sue Trump Over Tariffs That Could Trigger 'Economic Nuclear Winter'

WASHINGTON DC, TUESDAY - Lawsuits regarding U.S. import tariff rates are expected to increase. Tycoons claim that the tariffs imposed by U.S. President Donald Trump could trigger a global "economic nuclear winter."

Reported by US media, Fortune, on Tuesday (8/4/2025), the US Chamber of Commerce and Industry (Kadin) is considering a lawsuit against Trump's decision. The consideration was made after a number of large companies that are members of the US Chamber of Commerce objected to the new US import duty (BMI) tariffs.

The companies do not dare to proceed to court on their own. This is because they fear becoming targets of Trump's anger and his fanatic supporters. On the other hand, they could be severely affected by BMI's new tariffs. Production costs increase, which could drastically reduce potential profits.

The BMI will cause the prices of all imported products to skyrocket into the US. Some could double their current prices.

In 2020, the U.S. Chamber of Commerce also filed a lawsuit against the Trump administration. At that time, the main issue of the lawsuit was immigration policy. The Chamber argued that Trump's immigration policy hindered businesses from acquiring the best talented workers.

For the tariff lawsuit, Kadin is not the first. The New Civil Liberties Alliance (NCLA) had previously filed a lawsuit regarding Trump's tariff policy. They represent SMEs that have been importing from China. The plaintiffs argue that Trump does not have the authority to impose high BMI on China.

Trump used the International Emergency Economic Powers Act (IEEPA) as the legal basis for BMI. According to NCLA, IEEPA does not grant the president the authority to impose BMI. Furthermore, IEEPA has never been used as a legal basis for implementing BMI.

Several U.S. conglomerates also rejected the tariff. Elon Musk, who poured hundreds of millions of U.S. dollars into Trump's campaign, was among those who opposed it. He personally attacked Trump's Trade and Industry Advisor, Peter Navarro.

He stated that the economics lessons at Harvard University, where Navarro studied, were not good. Navarro responded by saying that Musk should just stick to selling cars.

Musk hopes that at least some of the allies and partners of the U.S. will not be subjected to BMI. Conversely, Navarro is a key proponent of imposing BMI tariffs on all U.S. trading partners.

Another tycoon and Trump donor and Republican, Bill Ackman, joined the protests against Trump’s tariff policy. He said the policy could trigger a global “economic nuclear winter.” Trump’s tariffs, Ackman said, are triggering an economic “nuclear war.”

He hopes Trump will delay the implementation of the BMI until at least the next three months. During that period, the US can negotiate with various countries to find a solution to the US goods trade deficit.

Ackman uses a term often used in conflict studies. Nuclear winter is a condition in which the Earth is covered in thick smoke from the explosion of many nuclear bombs. As a result, sunlight cannot penetrate to the Earth's surface.

The combination of the impact of the explosion and the lack of sunlight meant that no plants could grow. The temperature also dropped drastically and life became difficult.

Trump's tariffs could trigger a trade war. Countries are hampering each other's exports. As a result, international trade is halted. In fact, international trade is one of the main drivers of the global economy.

Singaporean Prime Minister Lawrence Wong is among those concerned about the impact of Trump's policies on international trade. In a speech to Singapore's parliament on Tuesday, Wong said Trump's tariffs were undermining the multilateral system that underpins global trade. "The policy opens up limited trade relations between countries, based on unilateralism," he said.

He reminded that the massive trade war triggered by BMI would prove bad for the global economy. When the US did this after World War I, the world economy collapsed, then World War II broke out.

He hopes there will be a solution to prevent trade barriers from occurring. If they have already been implemented, it will take a very long time and a lot of effort to reduce trade barriers.

Learning from experience, it took more than 30 years to create the current multilateral trading system. The elimination of global tariff and non-tariff barriers went through decades of negotiation rounds. (AFP/REUTERS)