Trump sued over Canadian tariffs in latest legal challenge

Key points

• The Liberty Justice Center sued on behalf of Gellert Global Group over 50% tariffs on about $20bn of Canadian goods.
• The suit argues the White House exceeded its authority under Section 338 of the 1930 Tariff Act.
• The group seeks an injunction to block collection and refunds with interest for importers.

A US legal group has sued the Trump administration over tariffs on Canadian goods, arguing the White House went beyond its authority. The Liberty Justice Center filed the case on behalf of New Jersey food business Gellert Global Group at the US Court of International Trade.

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 suit asks the court to find the levies unlawful and to order refunds with interest for affected importers.

Company cites harm to business

Gellert Global Group, a third-generation family business, pays 50% tariffs on cheese exported from Canada. It also faces Canadian retaliatory tariffs on American-made cheese it sells there.

Co-chief executive Thomas Gellert said the firm had spent generations building relationships with suppliers and customers. He said the tariffs "disrupt those relationships overnight" and create costs and uncertainty across the supply chain.

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

— Sara Albrecht

Legal arguments in the case

The lawsuit challenges the administration's use of Section 338 of the 1930 Tariff Act, which covers goods from wine to dairy products and hockey sticks. The group argues the section does not allow the executive branch to impose sweeping tariffs whenever a trade dispute arises.

The suit says Section 338 requires a 30-day waiting period, but the cheese tariff was added to the list a week before collection began. It also argues the section has been superseded by Section 301 of the Trade Act of 1974.

The group has filed a motion for a preliminary injunction to block collection. It is the fourth case the group has brought against Trump's tariffs.