A U.S.-based food importer has filed a lawsuit against President Donald Trump’s administration, challenging its decision to impose 50% tariffs on a wide range of Canadian products. The company argues that the administration exceeded its legal authority by relying on a decades-old trade law to introduce the import duties.
Gellert Global Group, a New Jersey-based family business that imports Canadian cheese, filed the lawsuit on October 20, 2026, at the U.S. Court of International Trade in New York. The case seeks to block the tariffs and challenge the legal basis for their implementation.
Importer Challenges Trump’s Tariff Authority
The lawsuit focuses on Section 338 of the Tariff Act of 1930, part of the Smoot-Hawley Tariff Act. Trump invoked the long-unused provision to impose tariffs of up to 50% on Canadian imports, marking its first known use for this purpose.
The administration introduced the tariffs after accusing Canada of discriminatory trade practices affecting American-made automobiles, alcoholic beverages and dairy products.
However, Gellert Global Group argues that the president cannot use the decades-old provision to bypass restrictions and safeguards established by Congress through subsequent trade legislation.
The company is represented by the Liberty Justice Center, a nonprofit legal organization that has challenged other Trump administration tariff measures.
According to the lawsuit, newer trade laws impose procedural requirements and limits on presidential tariff authority that the administration must respect. The legal challenge argues that Section 338 cannot be used to avoid those requirements.
Tariffs Increase Costs for U.S. Businesses
The dispute has direct financial implications for American importers that rely on Canadian products.
Gellert Global Group imports Canadian cheese and says the additional duties have increased its operating costs and disrupted relationships with suppliers and customers. According to the company’s complaint, it paid more than $520,000 in tariffs between September 16 and October 11.
The company is seeking a court ruling declaring the tariffs unlawful, an order preventing their continued collection and refunds with interest for affected importers.
The case could have wider implications for businesses importing Canadian goods if the court determines that the administration lacked the authority to impose the duties.
Canada-U.S. Trade Tensions Continue
The lawsuit comes amid heightened trade tensions between Washington and Ottawa. Canada has introduced retaliatory measures in response to U.S. tariffs, further complicating commercial relations between the two countries.
The White House has defended the administration’s approach, arguing that the tariffs are an appropriate response to what it considers discriminatory Canadian trade policies.
The legal dispute also follows earlier court challenges to Trump’s broader tariff strategy. In February 2026, the U.S. Supreme Court struck down most of the tariffs the administration had imposed in 2025 under a different legal authority.
The latest case will test whether the administration can rely on Section 338 to impose sweeping duties on Canadian imports despite legal challenges to its interpretation of the law.
As the proceedings move forward, American importers, Canadian exporters and businesses operating across the border will be watching closely for a decision that could affect trade costs and the future direction of U.S.-Canada economic relations.
Swifteradio.com
