What changed
Donald Trump’s administration is facing a new lawsuit over 50% tariffs on roughly $20bn of Canadian goods, including cheese, wine, dairy products and hockey sticks. The Liberty Justice Center filed the case for New Jersey food importer Gellert Global Group, seeking to halt collection and secure refunds with interest for affected businesses.
Why it matters
The dispute is about presidential power as much as cheese prices. The lawsuit argues the White House used Section 338 of the 1930 Tariff Act beyond what Congress allowed, including imposing the levies roughly a week after adding cheese to the tariff list despite the law’s alleged 30-day waiting period.
Gellert Global is paying the 50% charge on Canadian cheese while also facing Canadian retaliation on American-made cheese sold in Canada. Its co-chief executive, Thomas Gellert, said the measures had disrupted long-built supplier and customer relationships and added costs across the supply chain.
The case also tests whether the administration can keep shifting the same tariff policy between different legal authorities. The Liberty Justice Center previously won a challenge to tariffs imposed under the International Emergency Economic Powers Act. Its latest argument is that Section 338 has been superseded by the 1974 Trade Act, or, if it remains valid, that the government has not established the legal basis for such broad duties.
The immediate question is whether the US Court of International Trade will block collection. If it does, importers could receive relief while the wider legal fight continues; if it does not, the tariffs will remain in force while the court considers whether they were lawful. Canada’s matching countermeasures add another layer of cost for businesses operating on both sides of the border.
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