In brief
The United States trade policy is being challenged once more as the Liberty Justice Center sues President Donald Trump over a 50% tariff on Canadian imports that followed a breakdown in trade talks. The lawsuit, filed on behalf of Gellert Global Group—a New Jersey cheese exporter—argues that the White House exceeded its authority and caused immediate harm to American businesses. The complaint contests the use of Section 338 of the 1930 Tariff Act and calls for a preliminary injunction and refunds for affected importers. The case is part of a series of legal battles the group has brought against Trump’s tariff policy, including a successful challenge to the International Emergency Economic Powers Act earlier this year. The outcome will help define the scope of executive power in imposing retaliatory trade measures.
Trump sued over Canadian tariffs in latest legal challenge
Donald Trump is facing yet another lawsuit over his 50 % tariff on Canadian goods, after the Liberty Justice Center (LJC) filed a complaint on behalf of Gellert Global Group, a New Jersey cheese exporter.
The White House imposed the duty on about £20 billion of Canadian products after trade negotiations between the United States and Canada collapsed in August. The LJC says the executive action exceeded the authority granted by Congress and caused “immediate harm” to American businesses that rely on Canadian dairy and other foods.
Gellert Global Group, which has built long‑standing relationships with Canadian suppliers, is now facing retaliatory tariffs from Canada on the same dairy items it sells north of the border. Company co‑CEO Thomas Gellert said the sudden 50 % duty “disrupts those relationships overnight and creates costs and uncertainty that ripple through the entire supply chain.”
The lawsuit argues that the White House used Section 338 of the 1930 Tariff Act to justify the sweeping duty on items from wine to hockey sticks. That section was designed to protect U.S. industry from foreign discrimination, but the LJC contends it does not permit the executive branch to impose broad tariffs whenever a trade dispute arises.
Section 338 also requires a 30‑day waiting period before levies can be applied, yet the duty on Canadian cheese was added to the list just a week before it took effect. The complaint seeks a preliminary injunction to halt collection and demands refunds with interest for affected importers.
According to LJC chief executive Sara Albrecht, the case is not an attack on Trump personally but on the presidency itself. “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 represents the fourth challenge by the LJC against Trump’s tariffs, following a successful suit that struck down the International Emergency Economic Powers Act (IEEPA) tariffs in February. The organization contends that the Constitution gives tariff power to Congress, and the executive cannot slide from one statute to another to circumvent Congressional limits.
The White House has been asked for comment, while Canadian Prime Minister Marc Tremblay has matched the U.S. tariffs “dollar for dollar” in response to the earlier duties on cars, dairy and alcohol.
