Liberty Justice Center sues over Trump's 50% Canadian tariffs — SkimNews
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- Liberty Justice Center filed suit on behalf of Gellert Global Group at the US Court of International Trade, arguing the 50% tariff on roughly $20bn of Canadian goods is unlawful and seeking refunds with interest for affected importers.
- Gellert Global Group, a New Jersey-based third-generation food business, is paying 50% tariffs on Canadian cheese exports while simultaneously hit by retaliatory Canadian tariffs on American-made cheese it sells across the border — co-CEO Thomas Gellert called the levies an overnight disruption to generations of supplier relationships.
- Section 338 of the 1930 Tariff Act, the legal basis the White House invoked to hit Canadian wine, dairy and hockey sticks, requires a 30-day waiting period before levies can take effect — but the cheese tariff was added to the list just one week before collection began, the lawsuit alleges.
- The lawsuit argues Section 338 has been superseded by Section 301 of the Trade Act of 1974, and that the statute — designed to protect US business against foreign discrimination — does not authorize the executive branch to impose sweeping tariffs or import restrictions whenever a trade dispute arises.
- Sara Albrecht, CEO of the Liberty Justice Center, said the case is not about Trump personally but about the presidency: 'No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required.'
- The filing is the group's fourth challenge to Trump's tariffs and includes a motion for a preliminary injunction to block collection — following its successful February 2025 case that struck down 'liberation day' tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
- Canadian PM Mark Carney matched the Section 338 tariffs 'dollar for dollar' last month after Trump imposed them for what he called 'unequal treatment' of US cars, dairy and alcohol — retaliation the White House cited to justify the levies in the first place.
Why it matters: The Liberty Justice Center already beat Trump once on tariffs, striking down IEEPA-based 'liberation day' duties in February — a proven track record that makes this fourth lawsuit a credible threat to the 50% Section 338 duties on $20bn of Canadian goods, and a separate preliminary injunction could pause collection before any merits ruling.
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