Trump Faces New Legal Battle Over Canadian Tariffs

A new lawsuit filed by the Liberty Justice Center is pushing back against President Donald Trump’s recent 50‑per‑cent tariff on Canadian goods, challenging the president’s use of Section 338 of the Tariff Act of 1930.

The tariffs were imposed after trade talks between Washington and Ottawa collapsed in August, targeting about $20 billion worth of Canadian products, including dairy, wine, and sporting equipment. The counter‑measure, announced by the White House in a short‑notice executive order, sought to pressure Canada into renegotiating trade agreements.

The Liberty Justice Center, acting for New Jersey‑based food brand Gellert Global Group, argues that the executive overstepped its statutory authority. It claims that the tariffs “caused immediate harm to American businesses” and were imposed too swiftly, violating the 30‑day waiting period required under Section 338.

Gellert Global, which exports cheese from Canada to the U.S., faced 50 percent duties on its last shipment and is also dealing with retaliatory duties from Canada on U.S. cheese sold north of the border. Chief executive Thomas Gellert said the tariffs “disrupt long‑standing supply chains overnight and create costly uncertainty for our partners.”

Section 338, the legal group asserts, is meant to protect U.S. businesses against discrimination, not to empower the president to impose sweeping tariffs during trade disputes. The lawsuit contends that the statute has been superseded by Section 301 of the Trade Act of 1974 and that the executive must adjust its stance in accordance with Congress’s desires.

If the court finds the tariffs unlawful, it could order refunds and interest for affected importers, while also blocking future collections. The case marks the fourth time the Liberty Justice Center has challenged Trump’s tariff policies, including the earlier defeat of broad duties in February under the International Emergency Economic Powers Act.

The U.S. government has been asked for comment; meanwhile, Canadian Prime Minister Mark Carney’s government has mirrored the U.S. tariffs on a dollar‑for‑dollar basis, further escalating tension. Analysts say the legal dispute will set a precedent for executive power over trade and may influence future U.S.–Canada negotiations.