In brief
Donald Trump’s 50% tariffs on $20 bn of Canadian goods have sparked a new legal challenge from the Liberty Justice Center. The U.S. group argues the administration overstepped its authority under Section 338 of the Tariff Act. The lawsuit seeks refunds with interest and questions whether the President can impose sweeping tariffs without Congress’s consent. The case adds to a series of disputes that could reshape U.S.–Canada trade relations.
The U.S. president is the latest target of a tariff lawsuit as the legal battle heats up over a 50% duty on $20 bn of Canadian goods. The move was part of a trade standoff that began in August when Canada’s trade talks fizzled.
The Liberty Justice Center, acting for New Jersey food firm Gellert Global Group, filed a suit claiming the tariff violates the Tariff Act of 1930. The case argues that the executive branch cannot simply pull a dormant law to impose massive duties on imports.
Gellert, which imports cheese from Canada, says the sudden duty disrupts supply chains and costs businesses millions. The company also faces Canadian retaliatory tariffs on American dairy.
The lawsuit is the fourth from the group against Trump’s trade policy, following a successful challenge to the International Emergency Economic Powers Act tariffs last year. The legal team seeks a preliminary injunction and a refund of the collected duties with interest.
If the court sides with the plaintiffs, it could limit the president’s ability to impose tariffs without congressional backing, potentially altering the future of U.S.–Canada trade.
