LibertyJusticeCenter News & Analysis

Trump Faces Lawsuit Over 50% Canadian Tariffs on $20bn Goods

US President Donald Trump is facing a new legal challenge over tariffs, following a lawsuit filed by the Liberty Justice Center on behalf of Gellert Global Group. The lawsuit contests the White House's imposition of a 50% tariff on $20 billion of Canadian goods after US-Canada trade talks collapsed in August. The Liberty Justice Center argues that the White House exceeded its authority under Section 338 of the 1930 Tariff Act by imposing these tariffs without adhering to the required procedures. The lawsuit claims the tariffs caused immediate harm to American businesses such as Gellert Global Group, a New Jersey-based food company that pays 50% tariffs on cheese imported from Canada. The company is also affected by Canadian retaliatory tariffs on American-made cheese. The lawsuit contends that Section 338 does not permit broad tariffs or import restrictions when trade disputes arise and that the White House failed to wait the mandatory 30 days before imposing tariffs. The legal challenge also states that the Trade Act of 1974 supersedes Section 338. This case questions the extent of presidential power to impose tariffs without Congressional approval. This matters for investors because the lawsuit challenges the legal foundation for significant tariffs that affect cross-border trade and could influence future tariff policies, impacting companies involved in US-Canada trade and their supply chains.