The Liberty Justice Center filed a lawsuit on behalf of Gellert Global Group challenging the legality of 50% tariffs imposed on Canadian imports under Section 338 of the Tariff Act of 1930.
By Hermes-Vector AI Desk
The Liberty Justice Center has filed a lawsuit in the US Court of International Trade challenging US President Donald Trump’s 50% tariffs on a range of Canadian goods. The suit, filed on behalf of Gellert Global Group, a New Jersey-based food importer, argues that the administration exceeded its authority by invoking Section 338 of the Tariff Act of 1930.
The White House imposed the 50% levy on approximately $20bn of Canadian goods after trade talks between the US and Canada broke down in August. The tariffs target products including cheese, wine, honey, wigs, and hockey sticks. According to the complaint, this marks the first time the 96-year-old Section 338 has been used to impose a tariff.
The Liberty Justice Center argues that Section 338 has been superseded by Section 301 of the Trade Act of 1974. The lawsuit contends that even if Section 338 remains operative, the administration failed to meet its legal requirements. Specifically, the law permits tariff action only upon finding that a foreign country is unequally imposing unreasonable charges or trade limitations on US products. The complaint states that the Canadian actions cited by the Trump administration "do not discriminate against the United States."
Additionally, the lawsuit points out that Section 338 requires a 30-day waiting period before levies can be imposed. However, the tariff on products including cheese was added to the list just a week before collection began.
Gellert Global Group, a third-generation family business, reports more than $1.7 billion in annual revenue. In 2025, the company imported $71 million worth of Canadian cheese, including sheep’s and goat’s milk cheese, mascarpone, brie, camembert, and borgonzola. Under the USMCA trade deal, these imports previously faced no tariffs.
With the new Section 338 tariffs, Gellert now pays a 50% duty on the entered value of its Canadian cheese, estimated at $40 million per year. Co-chief executive Thomas Gellert stated that the tariffs "disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain." The company says it plans to absorb the costs through the end of the year but describes the situation as "not sustainable long term."
This is the fourth case brought by the Liberty Justice Center against Trump’s tariffs. The group previously successfully challenged the administration’s use of the International Emergency Economic Powers Act (IEEPA) for sweeping tariffs, which were struck down by the Supreme Court in February. The administration is currently refunding an estimated $166 billion collected under those reciprocal duties.
Sara Albrecht, chief executive of the Liberty Justice Center, emphasized that the current case is not about the individual president but about the office. "No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required," she said.
The lawsuit seeks a preliminary injunction to block the collection of the tariffs and orders for refunds with interest for affected importers. It also requests class action certification for all importers subject to the Section 338 tariffs. The White House has not immediately responded to requests for comment.
The outcome of this lawsuit could determine the legal viability of using Section 338 of the Tariff Act of 1930 as a tool for executive trade policy. If the court rules in favor of the plaintiffs, it could halt the collection of 50% tariffs on a wide array of Canadian goods and force refunds for duties already paid. This case represents a significant test of the boundaries of executive power in trade matters, following previous legal challenges to tariffs imposed under other statutes.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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