In brief
The Trump administration’s 50% tariff on $20 bn of Canadian imports has drawn another lawsuit from the Liberty Justice Center on behalf of New Jersey dairy group Gellert Global. The suit argues that the White House exceeded its statutory authority under Section 338 of the 1930 Tariff Act, which Trump used after Canada’s own retaliatory tariffs. The case highlights tension between executive trade powers and Congress‑drafted limits, as well as the ripple effects on U.S. food businesses that export cheese to Canada. By filing a preliminary injunction, the plaintiffs hope to halt the tariffs and secure refunds, reigniting a broader debate over the future of U.S.–Canada trade relations. The court’s decision could reshape how tariffs are imposed and litigated in the next wave of trade disputes.
Trump’s 50% tariff on $20 bn of Canadian goods has just landed another lawsuit. The move follows a breakdown in U.S.–Canada talks in August, when the White House slapped hefty duties on a range of products from cheese to hockey sticks.
The lawsuit, filed by the Liberty Justice Center for New Jersey dairy firm Gellert Global Group, argues the administration abused its power under Section 338 of the 1930 Tariff Act. Gellert has been paying steep fees on cheese exports, while Canadian firms face retaliatory tariffs on U.S. dairy. The case seeks refunds with interest and challenges the legal basis for sweeping duties.
Sara Albrecht, chief executive of the Liberty Justice Center, says the fight isn’t about Trump personally but about the limits of presidential trade authority. “No president should pull a dormant statute off the shelf to impose sweeping tariffs without the limits Congress required,” she says.
Canada’s response was swift — Prime Minister Mark Carney matched the U.S. tariffs “dollar for dollar,” and court filings allege the White House skipped the 30‑day waiting period required by Section 338 before levying duties on cheese.
If the court sides with Gellert, it could force the executive branch to backtrack on its trade strategy, freeing up Canada‑made goods to re-enter U.S. markets and giving food producers a chance to rebuild supply‑chain relationships. For businesses across America and Canada, the outcome will signal whether tariffs will remain a tool for negotiating trade talks or a relic of past administrations.
