A legal challenge has been initiated against the tariffs imposed by U.S. President Donald Trump on Canada. The lawsuit was filed in the United States Court of International Trade by the non-profit organization Liberty Justice Center on behalf of Gellert Global Group, a U.S. food importer. It contends that Trump’s utilization of an old trade statute, Section 338 from 1930, exceeds his presidential authority.
The lawsuit argues that the tariffs imposed on Canadian goods by Trump under Section 338 are not justified by Canadian policies. The White House justifies the tariffs as a response to Canadian actions that disadvantage U.S. exporters, including provincial bans on U.S. liquor, Canada’s supply-managed dairy system, and quotas on certain U.S. vehicles. However, the lawsuit asserts that these actions do not warrant the extensive tariffs imposed by the Trump administration.
The legal filing highlights the impact of the tariffs on businesses like Gellert Global Group, which faces disruptions in its supply chain and increased costs due to the trade war. The company is affected by both U.S. tariffs on Canadian cheese imports and retaliatory Canadian tariffs on American-made cheeses sold by its Canadian division. The lawsuit also raises concerns beyond Canada, warning that unchecked use of Section 338 by any president could lead to the imposition of tariffs without adequate congressional oversight.
The Liberty Justice Center, known for its legal challenges against Trump’s trade policies, seeks a declaration from the court that the tariffs are unlawful and demands a refund. The organization previously challenged Trump’s use of the International Emergency Economic Powers Act and was successful in proving its illegality before the Supreme Court.