In brief
The White House’s recent 50% duty on $20 billion of Canadian goods has sparked a lawsuit filed by the Liberty Justice Center on behalf of cheese exporter Gellert Global Group, arguing the tariffs violate Congressional limits. The case centers on Section 338 of the Tariff Act, with Canada matching the duties in a quick retaliatory response. Legal experts note the move could set a precedent on executive tariff powers, and a preliminary injunction is sought to stop collection. A favorable ruling would compel the Treasury to reassess its trade strategy.
By Rachel Clun, Business reporter, New York
The White House has filed a 50% levy on roughly $20 billion of Canadian goods in a retaliatory move that has landed Donald Trump’s administration in court again. A legal group on behalf of New Jersey cheese exporter Gellert Global Group has brought a challenge to the US Court of International Trade, arguing that the levies breach the limits set by Congress.
The case hinges on Section 338 of the Tariff Act of 1930, a statute intended to protect U.S. businesses from unfair foreign discrimination. The Liberty Justice Center contends that the President cannot invoke the old law to impose sweeping tariffs in a trade dispute, and that “the executive branch has overstepped the limits Congress put in place.”
Canadian officials have responded by matching the U.S. duties, tightening the same 50 % tax on products ranging from dairy to hockey sticks. The counter‑measure was announced just a week before the U.S. tariffs went into effect, raising questions about the timing and legality of the action.
“This case isn’t about Trump personally but about the powers of the presidency,” said Sara Albrecht, CEO of the Liberty Justice Center. “The Constitution gives tariff power to Congress. The executive cannot keep moving from one statute to another to sidestep those limits.”
The lawsuit seeks to have the U.S. duties declared unlawful and to secure refunds with interest for importers hit by the tariffs. A motion for a preliminary injunction is also on the docket. It follows the group’s earlier success in striking down the 2025 tariffs under the International Emergency Economic Powers Act.
If the court sides with the lawyers, it could halt the current tariff regime and force the Treasury to negotiate a new framework – a difficult prospect given ongoing tensions between the two nations.
