Gellert challenges Trump’s Canadian tariffs under a 1930 law
US food importer Gellert Global Group is challenging Canadian tariffs in the Court of International Trade. Its lawyers argue that the White House exceeded the authority of a Depression-era law and ignored a waiting period. The company seeks an end to collection and refunds as duties affect cheese crossing the border in both directions.
Geopolitics··Midday
A food importer seeks refunds
Gellert Global Group, a family-run food business based in the American state of New Jersey, is challenging the Trump administration’s tariffs on Canadian goods. Liberty Justice Center, the legal organization representing the company, filed the case on 20 October at the US Court of International Trade, which hears trade disputes. The company and a proposed class of importers want the duties declared unlawful, collection stopped and refunds paid with interest. The White House had imposed a 50 per cent tariff on roughly 20 billion dollars of Canadian products after trade negotiations broke down in August. BBC sought a response from the White House.[1], [2]
The lawsuit disputes presidential authority
The legal challenge concerns Section 338 of the Tariff Act of 1930, a provision addressing foreign discrimination against American commerce. The plaintiffs argue that it cannot be used as a general power to impose tariffs whenever a trade dispute develops. They say the Canadian policies cited by the administration do not justify the breadth of the duties. Liberty Justice Center also contends that Congress superseded the provision through Section 301 of the Trade Act of 1974, which requires investigation, public comment and other safeguards. Its alternative argument is that the administration has not met Section 338’s own legal conditions. The organization has asked for a preliminary injunction to suspend collection while the case proceeds. It also filed a motion for summary judgment.[1], [2]
Cheese duties affect both sides of the border
The plaintiffs say Canadian cheese was added to the tariff list on 8 September and duties began seven days later, despite a statutory waiting period of 30 days. They also question why cheese appeared on lists concerning Canadian liquor policy and automobile tariffs. Gellert pays the American duty on Canadian cheese, while its Canadian division faces retaliation on American-made cheese sold there. One Canadian supplier turns milk from farmers in upstate New York into brie and ships it back across the border. Co-chief executive Thomas Gellert said the tariffs disrupted relationships built over generations with suppliers and customers. The case asks the court to assess the administration’s authority and the collection procedure; the plaintiffs’ arguments await judicial determination.[1], [2]
