Trump faces lawsuit over 50% tariffs on Canadian goods
What's the story
The Gellert Global Group, a New Jersey-based food importer, has filed a lawsuit against President Donald Trump's 50% tariffs on several Canadian products. The suit was filed in the US Court of International Trade and seeks to have these "Section 338" tariffs declared unlawful. It also demands refunds for duties already paid by importers like Gellert Global.
Legal challenge
Legal challenge against Trump's tariff decisions
The lawsuit specifically challenges Trump's use of a Depression-era law to impose steep tariffs on Canadian goods.
The complaint argues that "Section 338 is a relic of the retaliation-based tariff policy" that has been "impliedly repealed" by subsequent legislation.
This legal move comes after Trump invoked Section 338 of the Tariff Act of 1930 in July, marking the first time this nearly century-old law was used to impose tariffs.
Impact assessment
Impact of tariffs on Gellert Global's business
The lawsuit highlights how the tariffs have impacted Gellert Global's business.
The company, which has an annual revenue of over $1.7 billion, imported $71 million worth of Canadian cheese in 2025.
However, under these new tariffs, Gellert now pays a 50% duty on its Canadian cheese imports, an estimated $40 million per year, which it says is "not sustainable long term."
Advocacy position
Liberty Justice Center's stance on the case
Gellert Global is represented by Liberty Justice Center, the same legal group that successfully challenged Trump's "reciprocal" tariffs at the Supreme Court earlier this year.
Liberty Justice Center CEO Sara Albrecht stressed that this case isn't about Trump but the presidency itself.
She said, "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."
Tariff justification
Background on Section 338 tariffs and Canadian retaliation
Trump had signed three presidential proclamations targeting different sets of Canadian imports with the Section 338 tariffs.
These were in response to alleged unfair treatment in the US motor vehicle, alcohol, and dairy sectors.
The tariffs took effect on September 9 after last-ditch trade talks with Canadian officials fell through.
Canada later retaliated with "dollar for dollar" tariffs on US goods.