Trump Administration Faces New Lawsuit Over Canadian Tariffs

The Trump administration is facing a new legal challenge over its imposition of tariffs on Canadian goods, this time from the Liberty Justice Center, the group that previously sued over the administration's "liberation day" import taxes.

The lawsuit, filed on behalf of U.S. food business Gellert Global Group, urges the U.S. Court of International Trade to declare the tariffs unlawful and to order refunds with interest for affected importers. The White House imposed a 50% levy on approximately $20 billion of Canadian goods after trade talks between the two countries broke down in August.

The plaintiffs argue that the White House exceeded its authority by enacting these tariffs and that they have caused "immediate harm to American businesses." The White House has been contacted for comment.

Gellert Global Group, a third-generation family business, is currently paying the 50% tariffs on cheese imported from Canada. The New Jersey-based firm also faces retaliatory tariffs from Canada on American-made cheese it sells in the Canadian market.

"These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain," said Thomas Gellert, co-chief executive of Gellert Global Group.

The Liberty Justice Center is challenging the administration's use of Section 338 of the 1930 Tariff Act, which they argue does not grant the executive branch the power to impose broad tariffs or import restrictions in response to trade disputes. This section of the act is intended to protect U.S. businesses from foreign discrimination.

The lawsuit specifically contests the White House's reliance on retaliatory tariffs imposed by Canada to justify its own duties under Section 338. Canada had previously matched U.S. tariffs "dollar for dollar" after President Trump imposed duties, citing what he called "unequal treatment" of U.S. cars, dairy, and alcohol.

Furthermore, the lawsuit points out that Section 338 requires a 30-day waiting period before levies can be imposed, yet the tariff on products including cheese was implemented just one week before collection began.

Sara Albrecht, chief executive of the Liberty Justice Center, stated that the case is not about President Trump personally but about the limits of presidential power. "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 legal group also contends that Section 338 of the Tariff Act of 1930 has been superseded by Section 301 of the Trade Act of 1974. Alternatively, they argue that if Section 338 remains applicable, the White House has not established a legal basis for the broad tariffs against Canada.

"The case is not an objection to tariffs as such. It asks who has the power to impose them and whether the executive branch followed the law Congress wrote," the Liberty Justice Center said.

The law group has filed a motion for a preliminary injunction to block the collection of these tariffs. This marks the fourth lawsuit brought by the Liberty Justice Center against the Trump administration's tariffs. Their previous case challenging tariffs imposed under the International Emergency Economic Powers Act (IEEPA) was successful, with those tariffs being struck down in February.

Albrecht reiterated the group's consistent argument: "the Constitution gives tariff power to Congress. The executive branch cannot keep moving the same policy from one statute to another and pretend the limits disappear."