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Politics · October 20, 2026

Trump administration sued over 50% tariffs on Canadian products

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A New Jersey food importer, Gellert Global Group, has filed a lawsuit in the U.S. Court of International Trade challenging the Trump administration's 50% tariffs on Canadian goods. Represented by the Liberty Justice Center, the lawsuit argues that the administration improperly invoked Section 338 of the Tariff Act of 1930—a "dormant" Depression-era statute—to bypass modern procedural safeguards and congressional oversight. The dispute follows the breakdown of trade negotiations between President Trump and Canadian Prime Minister Mark Carney, which resulted in reciprocal tariffs and an outright ban on certain Canadian imports. This legal challenge follows a previous Supreme Court ruling that struck down earlier Trump administration tariffs imposed under the International Emergency Economic Powers Act.

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Reported across the spectrum

  • Gellert Global Group filed a lawsuit in the U.S. Court of International Trade against 50% tariffs on Canadian goods.
  • The tariffs were justified using Section 338 of the Tariff Act of 1930.
  • The Liberty Justice Center is representing the plaintiff.
  • Section 338 is a Depression-era law that had not been previously used by a president to impose tariffs.
  • The Supreme Court struck down a previous set of Trump administration tariffs in February.
  • Canada has imposed reciprocal tariffs on U.S. goods in response.

Reported by only some outlets

  • Gellert Global Group estimates the tariffs will cost the company $40 million annually on cheese imports.
  • The 50% duties became effective on September 9.
  • Canadian Prime Minister Mark Carney blamed the breakdown of trade talks on last-minute changes to U.S. terms.
  • The lawsuit argues that the Reciprocal Trade Agreements Act of 1934 and the Trade Act of 1974 superseded the 1930 statute.
  • The administration recently banned nearly $1 billion worth of Canadian products, including alcohol and motorcycles.
  • Gellert Global Group is a $1.7 billion company that imported $71 million of Canadian cheese last year.

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