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Trump Faces New Legal Challenge Over Canadian Tariffs

US President Donald Trump confronts lawsuit from Liberty Justice Center over 50% duties on Canadian goods amid ongoing trade dispute.

Source: bbc.co.uk1 min read
Trump Faces New Legal Challenge Over Canadian Tariffs
Image via bbc.co.uk

In brief

A fresh lawsuit has been filed against President Trump by the Liberty Justice Center, alleging that the 50% tariffs imposed on Canadian imports violate the law. The case centers on Gellert Global Group, a family–owned cheese exporter that has been hit hard by the duties. The plaintiffs argue the White House overstepped its statutory limits under Section 338 of the Tariff Act, and seek refunds and interest. The lawsuit highlights the broader U.S.–Canada trade frictions that have escalated in recent months.

United States — President Donald Trump has been met with another legal hurdle as the Liberty Justice Center files a lawsuit accusing the administration of exceeding its authority when levying a 50% duty on Canadian goods worth roughly $20 billion.

The action follows a previously successful case that struck down sweeping tariffs imposed under the International Emergency Economic Powers Act. Now, the Center is arguing that the tariffs, imposed during a standoff that broke down in August, violated the Tariff Act of 1930, specifically Section 338.

Key to the case is Gellert Global Group, a third‑generation cheese exporter based in New Jersey that has been paying the 50 % tariff on Canadian cheese. The company also faces retaliatory duties from Canada on American cheeses it sells north of the border. “These tariffs disrupt decades‑long relationships between suppliers and customers,” Thomas Gellert, co‑CEO, said.

The lawsuit contends that the White House’s use of Section 338 was unlawful, because the statute was intended to protect U.S. businesses from foreign discrimination and does not permit the executive branch to impose sweeping duties without a formal congressional mandate. The petition also notes the statutory 30‑day waiting period before levies can be imposed, which the Trump administration allegedly ignored.

The Liberty Justice Center’s motion for a preliminary injunction aims to block the collection of the new tariffs while the case is decided. It is the fourth lawsuit the group has filed against Trump’s trade policy, all focused on asserting that tariff power belongs to Congress, not the executive branch.

As the legal battle unfolds, the broader trade war between the United States and Canada remains a source of uncertainty for businesses on both sides of the border, especially those involved in food and beverage exports.

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