U.S. food importer challenges Trump tariffs on Canadian goods

New Jersey food importer Gellert Global Group has challenged President Donald Trump’s tariffs targeting Canada in the New York-based United States Court of International Trade, according to CP24’s October 20 report. The nonprofit Liberty Justice Center filed the lawsuit on the company’s behalf, arguing that Trump exceeded his presidential authority.¹

A dispute over presidential authority

CP24 reported that the case centres on a Depression-era provision–Section 338–in the 1930 Tariff Act, which Trump invoked in August to place a 50 per cent tariff on various Canadian goods. According to the outlet, the administration also invoked the provision to prohibit imports of other Canadian products, including motorcycles and certain alcohol and dairy goods.¹

The White House’s position, as reported by CP24, is that Section 338 allows the president to impose tariffs when another country treats U.S. exporters less favourably than exporters from elsewhere. U.S. officials have cited provincial restrictions on American liquor, Canada’s dairy supply-management system and quotas affecting certain U.S. vehicles as reasons for the duties.¹

The lawsuit disputes whether those policies justify the breadth of the administration’s measures. According to CP24’s account of the case, it argues that the vehicle quotas and liquor bans were responses to Trump’s own tariffs, while the dairy policies were agreed under the Canada-United States-Mexico Agreement.¹

Importer cites supply-chain costs

Thomas Gellert, the importer’s co-chief executive, said the tariffs were disrupting relationships in the food industry and generating costs and uncertainty across supply chains. His comments describe the company’s concerns about the measures at the centre of the legal challenge, according to CP24.¹

The news release about the case also presented it as a dispute with implications beyond Canada. According to CP24, the release warned that leaving the duties unchecked could allow any president to use Section 338 for tariffs and other trade restrictions without meaningful oversight by Congress.¹

CP24 reported that the White House had not answered a request for comment. Its account nevertheless set out the administration’s stated interpretation of Section 338, alongside the importer’s argument that the Canadian measures cited by officials could not justify the tariffs imposed.¹

An earlier challenge under another law

CP24 reported that Liberty Justice Center had earlier challenged the Liberation Day tariffs and fentanyl-related duties on Canada, Mexico and China, which Trump imposed under the International Emergency Economic Powers Act. That litigation involved a different statute from the one at issue in the new case.¹

According to CP24, the U.S. Supreme Court concluded in February that Trump’s use of that emergency-powers law for the tariffs was unlawful because the Constitution assigns authority over taxes and tariffs to Congress. The new lawsuit challenges his reliance on Section 338 instead.¹