Trump Administration Sued Over 50% Tariffs on Canadian Products

The Trump administration is facing a lawsuit over its imposition of 50% tariffs on a range of Canadian goods. The Liberty Justice Center filed the suit Tuesday in the U.S. Court of International Trade on behalf of Gellert Global Group, a New Jersey-based importer. The group estimates the tariffs will cost Gellert Global Group approximately $40 million per year on cheese imports alone.

The tariffs, which went into effect on September 9, apply to various Canadian products including alcohol, hockey sticks, and cement, in addition to existing levies on aluminum, lumber, vehicles, and steel. The lawsuit challenges Section 338 of the Tariff Act of 1930, a statute that the Liberty Justice Center states has not been previously utilized. The organization is seeking a preliminary injunction to block the 50% tariffs, arguing that President Trump exceeded his authority by imposing them without congressional authorization.

Gellert Global Group, a $1.7 billion company, imports a variety of Canadian cheeses such as goat's milk cheese, brie, mascarpone, and camembert. Last year, the company imported $71 million worth of these products. The company stated that the tariffs disrupt established relationships with suppliers and customers, leading to increased costs and uncertainty throughout the supply chain.

One example cited by the company involves a supplier that sources milk from U.S. dairy farmers, processes it into brie in Canada, and then ships the finished cheese back to the United States. The tariffs impose significant taxes on both ends of this operation.

The latest duties followed President Trump's claims that Canada had discriminated against U.S. businesses. The tariffs were temporarily suspended during trade negotiations between the U.S. and Canada. However, talks broke down, leading to an escalation of the trade dispute, with Canada imposing reciprocal tariffs on U.S. goods. Canadian Prime Minister Mark Carney attributed the collapse of negotiations to "last-minute changes in the U.S. proposed terms" that he deemed "unfair, uneconomic" and questioned the reliability of any deal.

The Liberty Justice Center has previously challenged the administration's tariffs. In February, the Supreme Court ruled in favor of the center, overturning tariffs imposed under the International Emergency Economic Powers Act. The government has since been refunding those tariff payments, including interest.