In brief
A new lawsuit filed by the Liberty Justice Center (LJC) contests the U.S. government’s 50 % tariffs on Canadian products, citing overreach of executive power. The case hinges on whether the White House correctly invoked Section 338 of the Tariff Act of 1930 to impose duties in retaliation for Canadian measures. Gellert Global Group, a New Jersey cheese exporter, has been paying the levies and will seek refunds with interest. The suit claims the tariffs created immediate harm to American businesses and that the statute has been superseded by Section 301 of the Trade Act. LJC’s action is the fourth challenge to Trump‑era tariffs, reflecting ongoing disputes over trade retaliation limits.
Legal Challenge Over 50% Canadian Tariffs
President Donald Trump’s recent campaign of retaliatory duties, announced after trade talks with Canada collapsed in August, now faces a new lawsuit launched by the Liberty Justice Center (LJC) on behalf of Gellert Global Group, a cheese exporter in New Jersey.
The White House invoked a 50 % levy on some $20 billion of Canadian goods, a move that the LJC argues exceeded the executive branch’s authority and caused immediate harm to U.S. businesses.
Gellert Global Group, which has paid the tariff on Canadian cheese imports, is also confronting retaliatory measures from Canada on the same U.S. cheese products it supplies north of the border.
At the centre of the litigation is Section 338 of the 1930 Tariff Act, used by the administration to justify the duties. The LJC contends that this provision has been superseded by Section 301 of the Trade Act of 1974 and that the White House failed to establish a legal basis for the sweeping tariffs.
Beyond seeking refunds and interest for affected importers, the suit includes a motion for a preliminary injunction to halt further collection of the duties.
“No president should be able to pull a dormant statute off the shelf and impose sweeping tariffs or import bans without congressional limits,” stated Sara Albrecht, chief executive of the LJC. “The case is not an objection to tariffs as such, but to who has the power to impose them.”
This marks the LJC’s fourth challenge to Trump‑era tariffs, following a successful lawsuit that struck down tariffs imposed under the International Emergency Economic Powers Act in February.
