Trump faces new lawsuit over Canadian tariffs

US President Donald Trump is facing a fresh legal challenge over tariffs imposed on Canadian goods, after a group that previously won a case against his import taxes filed a new lawsuit. The case was lodged in the United States Court of International Trade on behalf of Gellert Global Group, a US food importer that says it is being hit by the latest 50% levy. The White House imposed the duties on about $20bn of Canadian goods after trade talks between the US and Canada broke down in August.

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The Liberty Justice Center is asking the court to rule that the tariffs are unlawful and to order refunds with interest for affected importers. The group says the administration exceeded its authority by using Section 338 of the 1930 Tariff Act, which it argues does not allow sweeping tariffs or import restrictions whenever a trade dispute arises. The lawsuit also says the White House relied on Canada's retaliatory tariffs to justify its own duties, and argues that the law requires a 30-day waiting period before levies can be imposed.

Gellert Global Group said it is paying 50% tariffs on cheese exported from Canada and is also facing retaliatory tariffs from Canada on American-made cheese sold north of the border. Co-chief executive Thomas Gellert said the company had spent generations building relationships with suppliers and customers in the food industry. He said the tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the supply chain.

The case adds a new layer of pressure on importers already dealing with higher costs and cross-border trade friction. The dispute matters because it sits at the intersection of trade policy, business costs and presidential authority. Section 338 of the Tariff Act is nearly 100 years old and was designed to protect US business against foreign discrimination, but the legal challenge argues it cannot be stretched to cover broad tariff action in a trade dispute.

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The filing also comes after Canada introduced countermeasures against a series of US tariffs, and after Canadian Prime Minister Mark Carney matched the Section 338 US tariffs dollar for dollar last month. The Liberty Justice Center has become a notable player in challenges to Trump-era tariff policy, having previously succeeded in a case over the so-called liberation day import taxes. In this latest filing, it is targeting duties on products ranging from wine and dairy to hockey sticks.

The group says the tariffs were added to the list only a week before collection began, despite the law's 30-day waiting period, which it says further undermines the administration's case. What remains unclear is how quickly the court will act and whether it will grant the requested refunds if the challenge succeeds. The White House has not been quoted in the supplied material responding to the lawsuit.

The case is likely to be watched closely by importers, food businesses and trade lawyers because it could affect both the scope of Section 338 and the future of the Canadian tariff regime.

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