Gellert Global Group, a New Jersey-based food importer, filed a lawsuit against the Trump administration on Tuesday, challenging the legality of 50% tariffs imposed on Canadian goods under a law enacted nearly a century ago.
This marks another round of legal action by the same legal team, following the Supreme Court's February decision to strike down Trump's "reciprocal tariffs."
The lawsuit was filed by the Liberty Justice Center with the U.S. Court of International Trade, seeking a declaration that the tariffs are unlawful, an order halting their enforcement, and a directive for the Trump administration to refund all duties paid with interest.
The tariffs at issue took effect on August 22 and apply to a wide range of Canadian products including hockey sticks, wine, honey, wigs, and cheese.
Behind this case lies broader uncertainty over trade policy. The Liberty Justice Center previously succeeded in having Trump's "reciprocal tariffs" overturned at the Supreme Court, forcing the federal government to refund an estimated $166 billion in collected duties. The organization currently has two other lawsuits pending against Trump's tariff measures.
Controversy centers on a Depression-era law never before invoked
Trump signed three presidential proclamations on July 20, citing Section 338 of the Tariff Act of 1930 to impose 50% tariffs on specific Canadian goods, on the grounds of alleged unfair trade treatment by Canada in the automotive, alcohol, and dairy sectors.
This law had never been actually used in the 96 years since its enactment, and this marks the first time it has been invoked to levy tariffs. The complaint also argues that even if the law remains valid, the Trump administration's tariff increases fail to meet the statutory conditions.
Under that provision, the president cannot deploy tariffs at will; there must first be a verified finding that a foreign country has indeed imposed discriminatory charges or trade restrictions on American products. Furthermore, the tariff amount can only be used to "offset losses," not to impose unlimited punitive measures.
The complaint further emphasizes that Trump's claims of Canadian "discriminatory" behavior are not factual.
On one hand, two of the cited actions were merely Canada's countermeasures against prior U.S. tariffs, and "counter-retaliation cannot be counted as discrimination," especially since the U.S. reciprocal tariffs had already been ruled unlawful by the Supreme Court.
On the other hand, the dispute over dairy quotas stems from negotiating arrangements under the USMCA, which in practice gave American cheese vastly preferential access to the Canadian market, far better than that enjoyed by most other countries.
Plaintiff estimates annual tax burden of $40 million
The plaintiff, Gellert Global Group, generates annual revenue exceeding $1.7 billion. According to the complaint, the company imported $71 million worth of Canadian cheese in 2025, covering varieties such as feta, goat cheese, mascarpone, brie, camembert, and the blended cheese borgonzola.
Under the USMCA framework, the company had previously imported all Canadian cheese duty-free. However, with the 50% tariff in effect, Gellert estimates it must bear an additional tax burden of approximately $40 million per year.
The company stated it plans to absorb the related costs internally through the end of the year, but described this situation as "unsustainable in the long term."
The complaint warns that if the tariffs persist, the company will be forced to raise prices, leading to declining sales, customer attrition, increased shelf-space risks, and potential supply chain disruptions due to cost pressures on suppliers.
The Trump administration indicated in July that it would not renew the USMCA for another 16-year term, further intensifying corporate uncertainty about the future trade environment.
Judicial pressure continues as White House has yet to respond
Sara Albrecht, CEO of the Liberty Justice Center, said in a statement:
This case is not about the president personally, but about the boundaries of presidential power. No president should have the privilege of casually activating a long-dormant old law to bypass congressional limits and impose massive tariffs or import bans.
As of press time, the White House had not commented on the lawsuit. Canada had previously imposed "matching" retaliatory tariffs on American goods. After the reciprocal tariffs were overturned, the federal government initiated refund procedures, with the expected refund scale at approximately $166 billion.
Currently, beyond the reciprocal tariffs case, the Liberty Justice Center still has two other lawsuits pending against Trump's tariff measures, meaning the judicial pressure on the Trump administration over trade policy is unlikely to subside in the near term.
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