In the heart of Burlington, Vermont, behind a bustling coffee shop and nestled among the autumn colors, sits the headquarters of Terry Precision Cycling—a company that, for four decades, has quietly championed women’s cycling apparel. Now, this small business finds itself at the center of a national legal and economic storm, challenging President Donald Trump’s sweeping tariffs in a case set to reach the Supreme Court next week.
From the outside, Terry Precision Cycling seems an unlikely epicenter for a battle over presidential power and global trade policy. Inside, though, the stakes are clear. The company, led by president Nik Holm since about 2023, has weathered a tough market, fluctuating consumer demand, and the rollercoaster of the pandemic. But Trump’s tariffs, first announced in April 2025 and affecting nearly every country, have brought the company to a crossroads.
Holm’s concerns were immediate and existential. “We felt like our backs were up against the wall,” he told the Associated Press, describing the moment he realized the company might not survive under the new tariffs. Terry Precision Cycling sources materials globally—its cycling shorts are manufactured in the U.S. using fabrics from France, Guatemala, and Italy, while its signature, high-tech jerseys rely on materials found only in China. When tariffs hit, the company’s costs soared across the board.
For a business with slim profit margins and limited cash reserves, the impact was severe. The company had to add $50 to the price of a single pair of shorts when tariffs on Chinese goods skyrocketed to 145%, pushing the retail price to $199. “Name the cost and we can name the price, and then we can backtrack to see who can actually afford it,” Holm explained. The unpredictable pace of tariff changes, especially on Chinese imports, made setting prices feel like a game of chance. “If we don’t know the rules of the game, how are we supposed to play?” Holm asked, voicing the frustration of many small business owners caught in the crossfire.
Terry Precision Cycling is not alone in its struggle. The lawsuit it joined includes other small businesses—a plumbing supply company from Utah, a wine importer from New York, and a fishing-tackle maker from Pennsylvania—all represented by the Liberty Justice Center. This libertarian-leaning legal group, typically aligned with conservative causes, argues that Trump’s tariffs overstep presidential authority and violate a foundational principle: that taxation should be determined by the people’s representatives, not by executive fiat. As attorney Jeffrey Schwab put it, “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.”
At the heart of the legal battle is the International Emergency Economic Powers Act (IEEPA), a law invoked dozens of times over the years—usually to impose sanctions, not tariffs. Until February 2025, no president had used this law to levy tariffs. Trump broke new ground by imposing duties on China, Mexico, and Canada, arguing that these countries were not doing enough to curb illegal immigration and drug trafficking. In April, he rolled out “reciprocal” tariffs on nearly all U.S. trading partners, starting at 10% and escalating sharply for certain countries. Although some of these tariffs have since been paused, the impact on businesses like Terry Precision Cycling has been profound.
The numbers are staggering. According to the Congressional Budget Office, the tariffs are projected to collect about $3 trillion from businesses over the next decade. By September 2025, tariff revenue had already reached $195 billion—more than double the previous year’s total. For ordinary Americans, the effect is palpable: an analysis from the Yale Budget Lab estimates that the tariffs will add roughly $2,000 to household bills in 2025 alone.
The Supreme Court will hear Terry Precision Cycling’s case on November 5, 2025, alongside two other challenges—one from a group of Democratic-leaning states and another from an Illinois educational toy company. Plaintiffs have notched two wins in lower courts, but the government did persuade four appellate judges that the law gives the president broad authority over tariffs. The high court, with three justices appointed by Trump, has so far been hesitant to rein in executive power but has shown skepticism in similar cases, such as when it blocked President Joe Biden’s attempt to forgive $400 billion in student loans under a different emergency powers law.
Trump himself has underscored the gravity of the upcoming decision, declaring, “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.” His administration maintains that the tariffs are fundamentally different from Biden’s student-loan plan because they pertain to foreign affairs—a domain where, it argues, courts should be especially deferential to presidential authority.
For Holm and his team, the legal and political wrangling in Washington feels far removed from the day-to-day reality of running a small business. Terry Precision Cycling employs about 20 people and remains committed to its founding mission: getting more women on bikes and making sure they feel safe and comfortable. Holm, who often commutes by bike and is passionate about the technical details of their products, says, “It’s all about fit and function, and feeling safe and comfortable. That’s our foundation, getting people, getting women, riding. More butts on bikes and getting out there.”
But the company’s future—and the accessibility of its products—hangs in the balance. “If it becomes so unaffordable for them to do it, less can enter into that joy, that freedom of being on a bike,” Holm reflected. “It was about surviving this uncertainty.”
As the Supreme Court prepares to weigh the boundaries of presidential power and the fate of Trump’s tariffs, the outcome will reverberate far beyond the trading floors and boardrooms. For Terry Precision Cycling and countless other small businesses, the decision could mean the difference between survival and closure. And for American consumers, it may determine whether the simple pleasure of a bike ride remains within reach.
