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Gellert challenges 50 per cent Canadian tariffs in US trade court

Food importer Gellert Global Group has challenged the US administration’s 50 per cent tariffs on Canadian goods in the Court of International Trade. The company seeks an end to collection and refunds with interest. Its challenge targets the president’s statutory authority and the implementation timetable, as Canadian cheese imports and cross-border dairy trade face the duties.

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Soft-rind cheese rounds in freight crates inside a refrigerated trailer, facing a border inspection lane with Canadian and US flags.

Gellert asks the trade court to stop collection

Gellert Global Group, a US food importer that buys Canadian cheese, filed a lawsuit in the US Court of International Trade challenging the administration’s 50 per cent tariffs on Canadian products. The action contests the use of Section 338 of the Tariff Act of 1930 to impose the duties.[1], [2]

The Liberty Justice Center, the legal organisation representing Gellert, seeks a declaration that the tariffs are unlawful and refunds with applicable interest for affected importers. It also requested a preliminary injunction and summary judgment in the plaintiffs’ favour. The case is pending; no ruling granting those requests has been announced.[1]

The challenge targets statutory authority

The plaintiffs argue that Section 301 of the Trade Act of 1974 superseded or limits the earlier Section 338. They also contend that the administration failed to establish the statutory conditions for using Section 338. The challenge disputes reliance on Canadian retaliation and dairy policies as evidence of discrimination.[1]

Cheese imports bring the dispute across the border

The lawsuit invokes a 30-day waiting period for newly added goods. According to the plaintiffs, cheese was added on September 8 and collection began on September 15, only 7 days later. Gellert says its Canadian cheese imports incur the duty, while Canadian retaliation affects American cheese sold by its Canadian division. In its example, New York milk becomes brie in Canada before returning to US customers.[1]

References

  1. News sourceLiberty Justice CenterFood importer challenges 50% tariffs on Canadian goods↩1↩2↩3↩4
  2. News sourceBloomberg NewsTrump administration sued over 50 per cent tariffs on Canadian products↩