On October 20, 2026, food importer Gellert Global Group and the Liberty Justice Center sued President Donald Trump in the U.S. Court of International Trade over 50% tariffs on Canadian goods. The lawsuit argues Trump misused Section 338 of the Tariff Act of 1930, a 96-year-old law never previously invoked for tariffs. Gellert estimates the duties will cost it $40 million annually on cheese imports, while the White House vowed to defend the measures.
Lawsuit challenging the Canadian tariffs
- ▪The legal complaint filed by Gellert Global Group against the Trump administration asks the U.S. Court of International Trade to declare the Section 338 tariffs unlawful, issue an injunction blocking enforcement, and order refunds with interest for duties already paid
- ▪Gellert Global Group's lawsuit contends that the Trump administration violated statutory rules by waiting only seven days instead of the required 30 days before collecting tariffs on Canadian cheese added to the product list in September 2026
- ▪New Jersey food importer Gellert Global Group filed a lawsuit on October 20, 2026, in the U.S. Court of International Trade in New York, challenging President Donald Trump's 50% tariffs on Canadian goods
Impact on Gellert Global Group
- ▪Gellert Global Group generated $1.7 billion in annual revenue and imported $71 million worth of Canadian cheese in 2025 without paying tariffs under the USMCA trade agreement
- ▪Gellert Global Group co-CEO Thomas Gellert stated that the 50% tariffs on Canadian goods disrupt supplier and customer relationships overnight and create widespread cost uncertainty across the entire food supply chain
- ▪Gellert Global Group estimates that the 50% tariffs under Section 338 will cost the company approximately $40 million per year on Canadian cheese imports, having already paid over $520,000 in duties between September 16 and October 11, 2026
Legal arguments against Section 338
- ▪Gellert Global Group's lawsuit against President Donald Trump asserts that Section 338 of the Tariff Act of 1930 had never been invoked to impose tariffs in its 96-year history prior to 2026
- ▪The Liberty Justice Center, representing Gellert Global Group, argues that Section 338 of the Tariff Act of 1930 is a dormant statute that was impliedly repealed and superseded by modern trade laws such as Section 301 of the Trade Act of 1974
Liberty Justice Center's tariff litigation
- ▪The October 20, 2026 lawsuit filed on behalf of Gellert Global Group marks the fourth major legal challenge brought by the Liberty Justice Center contesting President Donald Trump's trade tariffs
- ▪The Liberty Justice Center previously represented plaintiffs in a Supreme Court case that struck down President Donald Trump's reciprocal tariffs under the International Emergency Economic Powers Act in February 2026, leading to an estimated $166 billion in federal duty refunds
Trump administration's Canadian tariff actions
- ▪The White House stated that President Donald Trump invoked Section 338 to offset Canadian trade discrimination against American dairy, alcohol, and auto exports, and affirmed that the administration will defend the Section 338 tariffs in court
- ▪Following the collapse of trade talks in Washington between President Donald Trump and Canadian Prime Minister Mark Carney, Canada retaliated with dollar-for-dollar tariffs on U.S. goods, and President Trump later announced a ban on nearly $1 billion of Canadian products
- ▪President Donald Trump invoked Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian products including dairy, alcohol, hockey sticks, wigs, and clothing following alleged trade discrimination by Canada
Limits on presidential tariff authority
- ▪The U.S. Constitution originally assigned tariff power to Congress, but subsequent trade legislation ceded conditional tariff authority to the president subject to statutory procedures, investigations, and public comments
- ▪Trade legislation passed by Congress after Section 338 of the Tariff Act of 1930 limited presidential tariff authority to specific circumstances, including dealing with national security threats and foreign currency crises
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