Food Importer Sues Trump at Trade Court Over 50% Section 338 Tariffs on Canada

5.4 · 11d ago · US · FINANCE

The Facts

  • Gellert Global Group, a New Jersey-based importer of Canadian cheese, filed suit on Tuesday in the US Court of International Trade challenging President Trump's 50% tariffs on Canadian goods. ✓2 · Al Jazeera, CNBC
  • The tariffs rely on Section 338 of the Tariff Act of 1930 (Smoot-Hawley), which had never before been used to impose a tariff. ✓2 · Al Jazeera, CNBC
  • The Liberty Justice Center represents Gellert; CEO Sara Albrecht said no president should be able to use a dormant statute to impose sweeping tariffs without the limits Congress required. ✓2 · Al Jazeera, CNBC
  • The complaint asks the court to declare the tariffs unlawful, block their collection, and order refunds with interest. ✓2 · Al Jazeera, CNBC
  • The complaint argues Section 338 was impliedly repealed by later laws and that the Canadian actions cited do not discriminate against the US: two were responses to Trump's own tariffs, and the third is dairy quota terms negotiated under USMCA. ✓2 · Al Jazeera, CNBC
Dive deeper · 6 more factsShow less
  • The Supreme Court struck down most of Trump's 2025 reciprocal tariffs in February; the administration is refunding an estimated $166 billion. ✓2 · Al Jazeera, CNBC
  • The White House did not immediately respond to requests for comment. ✓2 · Al Jazeera, CNBC
  • The complaint argues that even if Section 338 is valid, requirements were not met, including that the statute's required 30-day wait was not observed for added products; the administration waited only seven days before collecting tariffs on cheese in September. Al Jazeera only
  • Gellert paid more than $520,000 in duties between September 16 and October 11, according to the complaint. Al Jazeera only
  • Gellert imported $71 million of Canadian cheese in 2025, paid no tariffs on it under USMCA, and now pays a 50% duty estimated at $40 million per year; it plans to absorb costs through year-end. CNBC only
  • Trump signed three Section 338 proclamations on July 20 citing Canadian treatment of US motor vehicle, alcohol and dairy sectors; the tariffs took effect Aug. 22, and Canada retaliated with dollar-for-dollar tariffs. CNBC only

Context

Gellert Global Group, represented by the Liberty Justice Center, filed suit in the US Court of International Trade against the 50% tariffs on Canadian goods imposed under Section 338 of the 1930 tariff act. The law allows tariffs of up to 50% on countries found to discriminate against US commerce.

The Liberty Justice Center previously won the Supreme Court case that struck down Trump's reciprocal tariffs in February. The group is engaged in other tariff lawsuits.

Conflicting Reports

  • Al Jazeera says Trump first imposed the tariffs 'over the summer' and expanded them in September; CNBC dates the proclamations to July 20, with effect Aug. 22.
  • Al Jazeera calls this the fourth major legal challenge to Trump's tariffs; CNBC says the Liberty Justice Center is engaged in two other suits, without a count of challenges.

How the Agent Panel Scored This

Independent AI personas each scored importance 1–10; the story's score is a trimmed mean (highest and lowest votes dropped). Vote spread: 1.

6 Business Analyst A lawsuit by a single importer challenging a newly imposed, unprecedented 50% Section 338 tariff on Canada is a concrete legal development with broad trade implications, but the filing itself does not change tariffs and its immediate market impact is limited.
6 Policy Expert The story reports a new lawsuit challenging actual, in-effect 50% tariffs under a never-before-used statute that affect a company paying roughly $40 million per year, but a private lawsuit itself is a filing rather than a government action, so it sits in the moderate range.
6 Global Affairs Analyst A single importer's lawsuit challenges real, concrete 50% tariffs on Canadian goods under a never-before-used statute, but the filing itself is a legal action with limited immediate direct impact beyond the tariffs already in force.
5 Critical Reader A single importer's lawsuit challenging newly imposed 50% tariffs on Canadian goods is a concrete legal filing with real stakes (a first-ever use of Section 338), but it is one company's complaint that has not yet produced a ruling, so its immediate impact is moderate.
5 Science & Tech Analyst A lawsuit by one importer challenging a newly used, never-before-invoked 50% tariff on Canada is newsworthy with notable trade implications, but it is a filing by a single company with limited immediate impact beyond the parties and the broader tariff dispute.
5 News Editor The concrete event is a single importer's lawsuit challenging tariffs that are themselves significant (50% on Canadian goods, first-ever Section 338 use), but the filing itself is a legal action with limited immediate impact beyond one company and its litigants.
5 Informed Citizen A lawsuit by a single importer challenges significant 50% tariffs on Canadian goods that are already in effect, a concrete legal action with broad trade implications, but it is only a filing that has not yet produced a ruling or changed collection, so its immediate impact on ordinary people is moderate.

Sources (2)

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