A New Jersey food importer filed a lawsuit Tuesday in the U.S. Court of International Trade, challenging the Trump administration’s use of a 1930 law to levy 50 percent tariffs on billions of dollars in Canadian goods.
The plaintiff, Gellert Global Group, is represented by the Liberty Justice Center, the legal advocacy organization that successfully challenged the administration’s earlier reciprocal tariffs before the Supreme Court in February. The new complaint requests a preliminary injunction to halt tariff collection on Canadian imports, arguing the executive branch exceeded its legal authority.
Challenging a Great Depression-Era Law
President Donald Trump invoked Section 338 of the Tariff Act of 1930 to penalize Canada over alleged unfair trade practices affecting American motor vehicle, dairy and alcohol industries. Legal experts and advocates noted that the statutory provision had remained dormant and untested in court since its passage during the Great Depression.
Liberty Justice Center Chief Executive Sara Albrecht argued that subsequent legislation passed by Congress superseded the 1930 measure. “No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required,” Albrecht said in a statement.
The lawsuit contends that the administration failed to satisfy the factual conditions required by Section 338. The filing argues that Canadian actions cited by the White House were countermeasures against earlier U.S. duties rather than unlawful trade discrimination, according to CNBC.
The complaint also asserts the administration violated procedural requirements by listing items like cheese just one week before duties took effect, rather than adhering to a statutory 30-day notice window, BBC reported.
Mounting Costs for Food Importers
Gellert Global Group, a third-generation enterprise generating more than $1.7 billion in yearly revenue, reported importing $71 million worth of Canadian cheese in 2025. Under the United States-Mexico-Canada Agreement, those shipments faced no tariffs. The company estimates the new 50 percent penalty will cost it roughly $40 million annually.
Thomas Gellert, co-chief executive of the business, stated that the duties threaten established operations across the sector. “These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain,” Gellert said.
Gellert indicated it plans to absorb the financial hit through the end of the calendar year, but warned that persistent tariffs would compel price increases, harm sales and strain suppliers on both sides of the border.
Rising Bilateral Friction
The legal dispute follows a breakdown in cross-border negotiations. After initial tariff announcements in July, bilateral discussions in Washington collapsed, leading Canadian Prime Minister Mark Carney to respond with dollar-for-dollar reciprocal duties against American exports, ABC News reported.
The White House stated that the president acted within statutory authority. “Congress empowered the President under Section 338 to offset the burden or disadvantage from discrimination by foreign governments against U.S. commerce in favor of other foreign commerce,” the administration said in a statement reported by the New York Post, adding that it will “defend vigorously the President’s actions in court.”
The case is now before the Court of International Trade in New York, which will determine whether to grant a preliminary injunction while the broader legal questions proceed.
