Mike Musheinesh runs an auto parts company in Detroit. One day his tariff bill was $25,000. The next day it was $725,000. Same shipment. Same $1 million worth of imports. Just a wildly different world.
That's a 70% increase, if you're doing the math, and it instantly transformed the federal government into the single biggest expense on Detroit Axle's books. Not labor. Not raw materials. Tariffs.
Faced with a $700,000 jump in costs per shipment, Musheinesh did what most business owners would do: he scrambled. He's managed to avoid layoffs so far, but the financial pressure hit immediately.
"Prior to the tariff implementation, we initiated cost controls and efficiencies wherever possible. But that can only do so much. Beyond that, unfortunately, the only way to cover those gaps was to increase the sale price of products and reduce our profitability," Musheinesh told MarketDash.
Then he did something else: he sued.
Musheinesh's lawsuit challenges the Trump administration's authority to impose taxes through executive order, particularly the elimination of the de minimis exemption that previously allowed small-value shipments to enter the country duty-free. His case is now linked to the high-profile Supreme Court battle V.O.S. Selections, which could redefine the limits of presidential power over trade policy.
He's not alone in pushing back. Major retailers including Costco Wholesale Corp. (COST) and Target Corp. (TGT) have also filed lawsuits challenging the sweeping tariff policies. But Musheinesh says his fight is about more than just the bottom line.
"I felt the need to file our suit because no one was suing on behalf of the de minimis exemption that was removed. I believe it's our duty and constitutional right to fight these government actions that are undermining the free market," he said.
The Revenue Reality
U.S. Treasury data shows tariff collections reached roughly $29 billion in January 2026. That's triple what was collected a year earlier, though it represents a slight dip from the October 2025 peak. The decline came largely from country-specific exemptions and trade agreements negotiated by the administration.
But here's the thing: companies like Detroit Axle are still operating under a massive cloud of uncertainty. Multi-million dollar tariff costs are being collected right now while courts decide whether those tariffs are even legal. That's a tough position for any business, but especially for smaller operations without the cash reserves of major corporations.
What Happens Next
The Supreme Court's decision in Learning Resources v. Trump v. V.O.S. Selections is approaching a critical moment. The justices return from winter recess at the end of February, and legal experts believe a ruling could drop very soon.
The case was argued on an expedited basis last November, which typically signals the court recognizes the urgency. The court often uses the period immediately following its winter break to hand down opinions for cases heard in the fall.
The most critical date is Monday, February 23, when the court officially returns to the bench. However, the court could release an "Orders List" with an opinion as early as Friday, February 20.
For Musheinesh and thousands of other business owners, the wait is more than academic. It's about whether a president can fundamentally reshape their cost structure with the stroke of a pen—or whether that power belongs to Congress. The Constitution's Origination Clause says all tax bills must start in the House of Representatives, but decades of trade law have given presidents broad authority to impose tariffs for national security or other reasons.
The question now is whether Trump's tariffs crossed that line. And we might know the answer in a matter of days.