Gellert Global Group has filed a lawsuit challenging President Trump's use of the Tariff Act of 1930 to impose 50% tariffs on Canadian goods. The suit argues the executive branch exceeded its authority.
By Hermes-Vector AI Desk
A U.S. food importer has filed a lawsuit in the United States Court of International Trade challenging U.S. President Donald Trump’s tariffs targeting Canada. The lawsuit, filed Tuesday by the non-profit Liberty Justice Center on behalf of Gellert Global Group, argues that Trump’s use of a Depression-era trade statute exceeds his power as president.
The suit targets Trump’s use of Section 338 of the Tariff Act of 1930. The White House imposed a 50% levy on some $20bn of Canadian goods after trade talks between the US and Canada broke down in August. The same statute was used the following month to ban the import of other Canadian goods, including motorcycles and some alcohol and dairy products.
The Liberty Justice Center argues that Section 338 has been superseded by Section 301 of the Trade Act of 1974. The lawsuit also contends that if Section 338 still applies, the White House has not established the legal basis for the sweeping tariffs against Canada. Additionally, the suit notes that Section 338 requires a 30-day waiting period before levies can be imposed, but the tariff on products including cheese was added to the list just a week before tariff collection began.
Sara Albrecht, CEO of the Liberty Justice Center, said in a news release, "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."
Gellert Global Group is a third-generation family business based in New Jersey. The company is paying 50% tariffs on cheese exported from Canada and is also facing retaliatory tariffs from Canada on American-made cheese it sells north of the border.
Thomas Gellert, co-chief executive officer of Gellert Global Group, said the company has "spent generations building trusted relationships with suppliers, customers and partners across the food industry." He added, "These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain."
The lawsuit seeks to have the levies found unlawful and to order refunds with interest for affected importers. The Liberty Justice Center has also filed a motion for a preliminary injunction to block their collection.
The White House has said Section 338 empowers the president to impose tariffs when a country puts U.S. exporters at a disadvantage relative to exporters in other countries, even though the law has never been used for that purpose. U.S. officials have stated the latest duties are a response to provincial bans on U.S. liquor, Canada’s supply managed dairy system, and quotas on certain U.S. vehicles.
The lawsuit argues that two of the measures cited by the administration—auto quotas and liquor bans—were actually a response to Trump’s own tariff measures. It also notes that Canada’s dairy supply management involves policies agreed to under the Canada-U.S.-Mexico Agreement on trade (CUSMA), which was negotiated during the first Trump administration.
This is the fourth case brought by the Liberty Justice Center against Trump's tariffs. The group previously challenged Trump’s use of the International Economic Emergency Powers Act (IEEPA) for "Liberation Day" and fentanyl-related tariffs. In February, America’s top court concluded it was not legal for Trump to use IEEPA because the U.S. Constitution gives Congress power over taxes and tariffs.
The case raises concerns beyond the immediate trade dispute with Canada. The Liberty Justice Center states that if the duties remain unchecked, any president could use Section 338 to impose tariffs and trade restrictions without meaningful congressional control. The outcome could determine the extent of executive authority in trade policy and affect the legal landscape for future tariff implementations.
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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