US food importer Gellert Global Group has filed a lawsuit seeking to block the Trump administration’s 50% tariffs on a wide range of Canadian imports, arguing that the President is attempting to exercise tariff powers that belong to Congress.
The lawsuit was filed on Tuesday by the Liberty Justice Center, a legal nonprofit representing the New Jersey-based importer, at the US Court of International Trade in New York.
President Donald Trump introduced the tariffs over the summer in response to what his administration described as Canada’s discriminatory treatment of American-made cars, alcohol and dairy products.
In imposing the duties, Trump relied on Section 338 of the Tariff Act of 1930, marking the first known use of the provision in nearly a century.
The lawsuit argues that the administration has repeatedly changed its legal justifications and relied on rarely used laws to expand presidential authority over tariffs, despite the US Constitution assigning that power to Congress.
“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,” said Sara Albrecht, chief executive of the Liberty Justice Center.
The White House did not immediately respond to a request for comment.
Legal Challenges to Trump’s Tariffs
The case marks the fourth legal challenge to a broad tariff policy introduced during Trump’s second presidential term.
In February, the US Supreme Court ruled against most of the tariffs Trump imposed in 2025. However, his administration has continued introducing wide-ranging trade duties that have faced legal challenges from businesses and US states.
The US Court of International Trade previously ruled against a temporary 10% global tariff introduced after the Supreme Court ruling. The court is also considering the legality of a third round of global tariffs imposed in 2026 under a stated effort to combat forced labour in international trade.
Gellert Global, which generates approximately $1.7 billion in annual revenue, imports Canadian cheeses affected by the 50% tariffs. The company is seeking to represent other businesses facing similar costs.
The challenged duties cover a broad range of Canadian products, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.
The lawsuit also argues that Section 338 has been superseded by later trade legislation, including the Trade Act that the Trump administration used to impose tariffs linked to forced labour earlier in 2026.
According to the lawsuit, federal laws authorising presidents to impose tariffs contain specific restrictions that the administration has repeatedly failed to respect.
Tariff Dispute Deepens US-Canada Tensions
The legal action comes amid worsening trade tensions between the United States and Canada.
Canadian Prime Minister Mark Carney abandoned a potential trade agreement on August 22, citing what he described as unreasonable last-minute demands from the US side.
Washington introduced the latest tariffs after negotiations collapsed, prompting Canada to retaliate with duties on selected American imports.
Although no high-level negotiations have been scheduled since the August breakdown, Dominic LeBlanc, the Canadian federal minister leading trade discussions with the United States, said the two countries remained in contact.
“We’re going to find a deal with the United States at some point that’s in the interests of the entire Canadian economy,” LeBlanc told reporters on Tuesday.
