A legal challenge has been filed against tariffs imposed by the Trump administration on Canadian imports. The Liberty Justice Center brought the lawsuit on behalf of Gellert Global Group, a New Jersey-based food business, seeking to have the duties declared unlawful and requesting refunds with interest for affected importers.
The administration applied a 50% levy on approximately $20 billion in Canadian goods following the breakdown of trade negotiations between the US and Canada in August. The tariffs cover products ranging from cheese and dairy to wine and hockey sticks. Gellert Global Group specifically faces the 50% duties on cheese exported from Canada and is also subject to retaliatory measures imposed by Canada on American cheese sold in that country.
The legal challenge centers on the administration’s invocation of Section 338 of the 1930 Tariff Act to justify the duties. The Liberty Justice Center argues that this provision, which was designed to address foreign discrimination against US businesses, does not grant the executive branch broad authority to impose sweeping tariffs whenever trade disputes arise. The group further contends that Section 338 has been superseded by Section 301 of the Trade Act of 1974 and that the proper legal basis for the tariffs has not been established.
Canadian officials have responded with countermeasures against US tariffs, with Canadian Prime Minister Mark Carney matching the Section 338 duties dollar for dollar. The Liberty Justice Center has also filed a motion seeking a preliminary injunction to block collection of the tariffs. This marks the fourth case brought by the legal organization challenging Trump administration tariff policies, following a successful challenge earlier this year against sweeping duties imposed under the International Emergency Economic Powers Act.
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