New lawsuit challenges President Trump's 50 percent tariffs on Canadian goods

A new lawsuit filed Tuesday challenges President Donald Trump's use of a 96-year-old law to impose 50 percent tariffs on a range of Canadian goods. Gellert Global Group, a New Jersey-based food importer with over $1.7 billion in annual revenue, filed the civil complaint in the U.S. Court of International Trade. The company says its cheese imports are covered by the duties and asks the court to declare the tariffs unlawful, block their enforcement, and order refunds for duties already paid with interest.

Background

Trump used Section 338 of the Tariff Act of 1930 in July to place the steep tariffs on Canadian hockey sticks, wine, honey, wigs, and other products. This marked the first time the Depression-era law had ever been used for a tariff. The lawsuit argues that the statute is a relic of retaliation-based policy that has been impliedly repealed by later legislation. It also contends that even if the law stands, the administration did not meet its legal requirements because Canadian actions cited in the proclamations do not discriminate against the United States.

Impact

Gellert Global imported $71 million worth of Canadian cheese in 2025, including sheep's and goat's milk cheese, mascarpone, brie, camembert, and borgonzola. Under the new tariffs, the company now pays a 50 percent duty on the entered value of its Canadian cheese, amounting to an estimated $40 million per year. Gellert states it will absorb the costs through the end of the year, but the situation is not sustainable long term and could lead to higher prices, lost sales, and supply chain interruptions.

Legal Representation

Gellert Global is represented by the Liberty Justice Center, the same legal group that successfully contested Trump's reciprocal tariffs at the Supreme Court in February. The administration is currently refunding an estimated $166 billion collected through those duties. Liberty Justice Center CEO Sara Albrecht stated that no president should have the power to use a dormant statute to impose sweeping tariffs without the limits required by Congress. The White House did not immediately respond to requests for comment.