Burlington, Vermont might not be the first place you associate with international trade disputes, yet it is here that a small business is challenging the boundaries of presidential powers. Terry Precision Cycling, a company that has faced numerous market challenges over 40 years, is now at the forefront of a Supreme Court case against tariffs imposed by former President Donald Trump.
Nik Holm, the president of Terry Precision Cycling, recalls the anxiety that followed Trump’s decision to impose tariffs on numerous countries, worrying about the survival of his company. “We felt like our backs were up against the wall,” Holm said, explaining the rationale behind joining a lawsuit against these tariffs, which the Supreme Court is set to hear soon.
Impact on Small Businesses
Located in Burlington, Terry Precision Cycling operates in a modest office behind a coffee shop, yet plays a significant role in the ongoing tariff debate. It sources materials globally, with cycling shorts made from components imported from France, Guatemala, and Italy, and distinctive jerseys crafted from Chinese high-tech fabric.
The financial strain of tariffs, especially those first announced in April, has left Terry Precision Cycling with limited options, primarily raising prices for consumers. The unpredictability of tariff changes, particularly on Chinese imports, complicates pricing strategies. Holm expressed this frustration, asking, “If we don’t know the rules of the game, how are we supposed to play?”
The situation forced the company to increase the price of one pair of shorts by $50 when tariffs surged to 145%, making them $199. Holm stated, “Name the cost and we can name the price, and then we can backtrack to see who can actually afford it.”
Holm, who has been with the company for more than a decade, is deeply passionate about cycling and the firm’s mission to promote women’s participation in the sport. “It’s all about fit and function, and feeling safe and comfortable,” he explained. “That’s our foundation, getting people, getting women, riding. More butts on bikes and getting out there.”
Legal Battle and Presidential Powers
Alongside other small businesses, Terry Precision Cycling is represented by Liberty Justice Center in the lawsuit. The legal group challenges the use of emergency powers for tariff imposition, arguing it’s an overreach of presidential authority. “It is practically what the American Revolution was fought over, the principle that taxation is not legitimate unless it is adopted by the representatives of the people,” said Jeffrey Schwab, an attorney with the center.
President Trump has defended his tariff strategy, asserting that the law permits presidential regulation of imports, including tariffs. He has described the case as one of the most significant in the country’s history, stating, “That’s one of the most important cases in the history of our country because if we don’t win that case, we will be a weakened, troubled financial mess for many, many years to come.”
Historically, the International Emergency Economic Powers Act, which Trump used to justify tariffs, has been employed for sanctions rather than tariffs. The Supreme Court will now decide on the extent of presidential power in this context. With tariffs projected to raise trillions and increase household costs by $2,000 annually, the ruling will have significant financial implications.
Despite the broader political and economic ramifications, Holm remains focused on the immediate impact on his business and its customers. “If it becomes so unaffordable for them to do it, less can enter into that joy, that freedom of being on a bike,” he reflected. “It was about surviving this uncertainty.”
