In brief
Following stalled trade talks in August, the United States imposed a 50% tariff on about $20 bn of Canadian products. The Liberty Justice Center filed a lawsuit on behalf of Gellert Global Group, a cheese exporter, claiming that the tariffs violate the Tariff Act and abuse Section 338 of the 1930 Act. The suit challenges the president’s ability to impose sweeping duties, seeks a preliminary injunction, and requests refunds with interest. Canada has responded with matching tariffs, extending the trade dispute. The case raises questions about executive power and the limits Congress intended for trade tariffs.
United States President Donald Trump faces a new legal challenge over the 50% heavy tariffs imposed on Canadian goods after trade talks collapsed in August.
The United States government levied the duties on about $20 bn of Canadian imports, ranging from cheese to hockey sticks, and the Liberty Justice Center (LJC) has filed a lawsuit on behalf of the New Jersey-based Gellert Global Group, a family‑owned cheese exporter.
The LJC argues that the White House exceeded its authority under Section 338 of the Tariff Act of 1930, a statute intended to protect American businesses from foreign discrimination, but that the executive branch cannot use it to impose sweeping duties whenever a trade dispute arises.
The suit seeks that the court declare the tariffs unlawful, block further collections, and order refunds with interest to affected importers. It also calls for a preliminary injunction to halt the tariffs immediately.
Gellert Global Group, which has built deep supply‑chain relationships with Canadian dairy producers, said the tariffs “disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain.”
Canada has retaliated by imposing matching duties, effectively doubling the trade barrier. The current case is the fifth LJC lawsuit against Trump‑era tariffs, following their successful challenge that struck down tariffs imposed under the International Emergency Economic Powers Act in February.
Chief executive Sara Albrecht of the LJC emphasized that the case isn’t about Trump personally but about the constitutional limits on executive tariff power, stating that “Congress gave tariff authority to the legislature, not to the presidency.”
The outcome of this lawsuit could set a precedent for how future U.S. tariffs are challenged and whether presidents can unilaterally alter trade policy without congressional approval.
