Trump Faces Fresh Lawsuit Over Tariffs on Canadian Imports
The White House introduced a 50% tariff on approximately $20 billion worth of Canadian goods after trade negotiations between Washington and Ottawa collapsed in August.
The Liberty Justice Center has filed the case on behalf of American food importer Gellert Global Group, asking the US Court of International Trade to rule that the tariffs are unlawful and require refunds, including interest, for businesses that paid them.
The lawsuit alleges that the administration exceeded its legal authority and caused "immediate harm to American businesses". The White House has been asked to comment on the case.
Gellert Global Group, a family-owned company now in its third generation, faces the 50% duties on cheese imported from Canada. The New Jersey-based business is also affected by retaliatory Canadian tariffs on American-made cheese it exports to the Canadian market.
Co-chief executive Thomas Gellert said the company had spent generations developing strong connections with suppliers and customers throughout the food sector.
"These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain," he said on Tuesday.
The Liberty Justice Center is challenging the administration's reliance on Section 338 of the 1930 Tariff Act to impose duties on a range of Canadian products, including wine, dairy goods and hockey sticks.
Although the provision was designed to protect American businesses against discriminatory treatment by foreign countries, the legal organization argues that it does not authorize the executive branch "to impose sweeping tariffs or import restrictions whenever a trade dispute arises". The case challenges the legal basis for using the provision to introduce broad import restrictions during trade disagreements.
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