New Jersey food importer files lawsuit challenging Trump’s 50% tariffs on Canadian goods

A New Jersey food importer, Gellert Global Group, filed a lawsuit on Tuesday challenging President Donald Trump's authority to impose a 50% tariff on $20 billion worth of Canadian goods. The lawsuit was filed in the U.S. Court of International Trade in New York.

Trump invoked Section 338 of the Tariff Act of 1930 to levy the tariffs in August, which prompted Canada to retaliate with dollar-for-dollar tariffs on nearly $1 billion worth of Canadian products. These include alcoholic beverages, dairy products, and motorcycles.

The president's use of Section 338 has never been tested in court before. Sara Albrecht, chair of the libertarian advocacy group Liberty Justice Center representing the Gellert firm, said, "No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required."

Trump has been seeking protective tariffs to bolster the U.S. economy. His previous tariffs, declared to address trade deficits, were struck down by the Supreme Court in February. Since then, Trump has found other legal grounds to tax imports. In July, he imposed 10% to 12.5% tariffs on numerous U.S. trading partners, claiming they failed to curb forced labor imports. These tariffs are also under legal challenge.

Additionally, Trump invoked Section 338 to target Canada for allegedly discriminating against U.S. dairy, auto, and alcoholic beverage industries. However, the Liberty Justice Center argues that the newer trade laws enacted by Congress "superseded" Trump's Section 338 tariff authority, rendering it obsolete.