Detroit Auto Parts Retailer Sues to Challenge Trump Tariffs

Detroit Axle CEO Mike Musheinesh takes legal action over skyrocketing import costs.

Published on Feb. 12, 2026

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Mike Musheinesh, CEO of Detroit auto parts retailer Detroit Axle, has filed a lawsuit challenging the Trump administration's authority to impose tariffs via executive order. Musheinesh's company saw its tariff bill on $1 million in imports jump from $25,000 to $725,000 overnight, a 70% increase that made the federal government Detroit Axle's single largest business expense. Facing mounting financial pressure, Musheinesh decided to take legal action to fight the tariffs on principles of free market and constitutional rights.

Why it matters

This case highlights the significant impact of the Trump administration's tariff policies on small and medium-sized businesses in the U.S. manufacturing sector. Companies like Detroit Axle are being forced to raise prices, cut profits, and consider layoffs to offset the skyrocketing costs of tariffs, raising broader questions about the administration's authority to unilaterally impose such measures.

The details

Musheinesh's lawsuit is closely tied to the high-profile Supreme Court case V.O.S. Selections, which challenges the Trump administration's authority to tax via executive order and the elimination of the de minimis exemption. Musheinesh felt compelled to file the suit because he believes no one was suing on behalf of the de minimis exemption that was removed, which he sees as a constitutional right to fight these government actions that are undermining the free market.

  • In January 2026, U.S. Treasury data shows tariff collections reached roughly $29 billion, triple the amount collected a year earlier.
  • The Supreme Court is expected to rule on the related case Learning Resources v. Trump v. V.O.S. Selections in the near future, with a decision likely to be released in late February 2026 as the justices return from winter recess.

The players

Mike Musheinesh

CEO of Detroit Axle, an auto parts retailer that has filed a lawsuit challenging the Trump administration's authority to impose tariffs via executive order.

Donald Trump

Former President of the United States whose administration's tariff policies are the target of the lawsuit filed by Detroit Axle.

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What they’re saying

“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.”

— Mike Musheinesh, CEO of Detroit Axle (Benzinga)

What’s next

The Supreme Court's decision in the related case Learning Resources v. Trump v. V.O.S. Selections is expected in late February 2026, which could have significant implications for Musheinesh's lawsuit and the broader legal challenges to the Trump administration's tariff policies.

The takeaway

This case highlights the significant financial burden that the Trump administration's tariff policies have placed on small and medium-sized businesses in the U.S. manufacturing sector, leading companies like Detroit Axle to take legal action to challenge the government's authority to unilaterally impose such measures.