A legal challenge against the tariffs imposed by U.S. President Donald Trump on Canada has been initiated in the United States Court of International Trade. The lawsuit, filed by the non-profit Liberty Justice Center on behalf of Gellert Global Group, a U.S. food importer, contends that Trump’s utilization of a trade statute from the 1930s exceeds his presidential authority. The statute, Section 338, was invoked by Trump to impose a 50% tariff on various Canadian goods following failed trade negotiations in August. Subsequently, the same statute was used to prohibit the import of additional Canadian products, including motorcycles, alcohol, and dairy items.
The lawsuit argues that the Canadian policies do not warrant the extensive tariffs imposed by the Trump administration. It challenges the White House’s assertion that Section 338 allows the president to levy tariffs in response to actions that disadvantage U.S. exporters compared to those from other countries, despite the statute never having been utilized for such purposes before. The lawsuit further highlights that certain Canadian measures, such as auto quotas and liquor bans, were implemented in response to Trump’s tariff actions. Additionally, it points out that Canada’s dairy supply management system was established under the Canada-U.S.-Mexico Agreement, negotiated during Trump’s initial term.
The repercussions of the tariffs are not only affecting Canada but are also impacting American businesses. Thomas Gellert, co-CEO of Gellert Global Group, expressed concerns over the disruption caused by the tariffs to longstanding relationships within the food industry. The company is facing challenges from both the U.S. tariffs on Canadian imports and retaliatory Canadian tariffs on American-made goods, leading to increased costs and uncertainty throughout the supply chain.
The lawsuit seeks to declare the tariffs unlawful and demand a refund. It emphasizes broader implications, stating that if unchecked, future presidents could potentially use Section 338 to impose tariffs without significant congressional oversight. The Liberty Justice Center, known for its prior legal challenges against Trump’s tariff policies, aims to address the constitutional concerns raised by the tariffs imposed on Canada.