U.S. Food Importer Sues Trump Administration Over 50% Canadian Cheese Tariffs

U.S. food importer Gellert Global Group sued the Trump administration in the U.S. Court of International Trade on Tuesday, alleging the government exceeded presidential authority by imposing 50% tariffs on Canadian goods under a nearly century-old trade statute. The New Jersey-based company seeks to have the tariffs declared unlawful and to recover duties and interest paid by affected importers. The Liberty Justice Center, representing Gellert, filed the suit and requested a preliminary injunction to suspend the tariff collection. Gellert is also seeking class-action status on behalf of similarly affected businesses. The White House did not respond to a request for comment. The dispute stems from the collapse of U.S.-Canada trade talks in August. The administration invoked Section 338 of the Tariff Act of 1930, citing discriminatory Canadian treatment of U.S. automobiles, alcohol and dairy products, to impose 50% tariffs on about $20 billion in Canadian goods, including wine, furniture, dairy, cement, apparel and hockey equipment. In September, it used the same provision to ban imports of some Canadian goods, including motorcycles and certain alcohol and dairy products. Canada retaliated with its own tariffs. Gellert, a third-generation family food company with roughly $1.7 billion in annual revenue, pays 50% tariffs on Canadian cheese imports, while its U.S. cheese exports to Canada face retaliatory duties. The case centers on whether Section 338 remains valid and can serve as legal basis for broad tariffs. Plaintiffs argue the provision was superseded by later legislation, including Section 301 of the Trade Act of 1974, and that the administration failed to establish adequate legal grounds. They also contend the law requires a 30-day waiting period before duties take effect, but some goods, including cheese, were added to the tariff list about a week before collection began. Liberty Justice Center CEO Sara Albrecht said the case concerns the limits of presidential power. It is the group's fourth lawsuit over Trump's tariff policies.