Gellert Global Group, a New Jersey-based food importer, filed a lawsuit on Tuesday challenging President Donald Trump's imposition of 50 percent tariffs on specific Canadian goods. The suit argues that the administration's use of Section 338 of the Tariff Act of 1930 is unlawful because the statute is an obsolete provision that has been effectively repealed by later legislation.
In July, Trump invoked this Depression-era law to place steep tariffs on Canadian hockey sticks, wine, honey, wigs, and other products. The action was taken in response to alleged trade discrimination by the Canadian government. This marked the first time in the law's 96-year history that it had been used to impose a tariff.
The civil complaint, submitted to the U.S. Court of International Trade, describes Section 338 as a relic of retaliation-based tariff policy. Gellert Global states that its cheeses are subject to these duties. The company is seeking a court declaration that the tariffs are illegal, an order to block their enforcement, and a mandate for the Trump administration to refund duties already paid, including interest.
The Liberty Justice Center represents Gellert Global in this case. The legal group previously secured a significant victory against the administration's trade agenda by successfully contesting "reciprocal" tariffs. The Supreme Court struck down those reciprocal tariffs in February. The federal government is currently refunding an estimated $166 billion collected from importers through those duties.
The Liberty Justice Center is also involved in two other lawsuits regarding what it characterizes as the misuse of laws to impose sweeping tariffs. Sara Albrecht, the group's CEO, stated that the case concerns the limits of presidential power rather than the individual holding the office. Albrecht argued that no leader should be able to activate an unused statute to enact broad trade restrictions or bans without adhering to the boundaries set by Congress.
The White House did not immediately respond to a request for comment on the new suit.