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Trump faces lawsuit for 50% tariffs on Canadian goods under 1930 law

Gellert Global Group has filed a lawsuit against President Donald Trump, challenging the 50% tariffs imposed on Canadian goods under Section 338 of the Tariff Act of 1930. The legal action, filed in the U.S. Court of International Trade, seeks to declare the tariffs unlawful and demands refunds for duties already paid.

BRIC Team
By BRIC Team · BRIC.TV
Published Oct 20, 2026 · 3 min read · 4 views
Trump faces lawsuit for 50% tariffs on Canadian goods under 1930 law

Key Takeaways

  • •Trump faces lawsuit over 50% tariffs on Canadian goods
  • •Lawsuit claims tariffs are unlawful under outdated law
  • •Tariffs could lead to higher prices and supply chain issues
  • •Canada has retaliated with its own tariffs on U.S. goods

President Donald Trump is facing a new legal challenge over his decision to impose 50% tariffs on a variety of Canadian goods. The lawsuit, filed on Tuesday by Gellert Global Group, a New Jersey-based food importer, contests the use of Section 338 of the Tariff Act of 1930, a law that had never before been used to impose tariffs.

Trump's tariffs, announced in July, target Canadian products such as hockey sticks, wine, honey, and wigs, among others. The administration justified the tariffs by citing alleged trade discrimination by Canada, particularly in the motor vehicle, alcohol, and dairy sectors. These tariffs took effect on August 22, following unsuccessful trade negotiations with Canadian officials in Washington.

The lawsuit, filed in the U. S. Court of International Trade, seeks to have the tariffs declared unlawful. It argues that Section 338, a relic of a bygone era of tariff policy, has been effectively repealed by subsequent legislation. The complaint demands that the Trump administration halt the enforcement of these tariffs and issue refunds for duties already paid, including interest.

Liberty Justice Center, the legal group representing Gellert Global, has previously succeeded in challenging Trump's trade policies. Earlier this year, the Supreme Court struck down Trump's 'reciprocal' tariffs, and the administration is in the process of refunding the estimated $166 billion collected from importers under those duties. Liberty Justice Center is also involved in two other lawsuits against what it describes as Trump's misuse of tariff laws.

In a statement, Liberty Justice Center CEO Sara Albrecht emphasized that the case is not about Trump personally but about the powers of the presidency. She argued that no president should have the authority to revive dormant statutes to impose sweeping tariffs or import bans without congressional oversight.

The White House has not responded to requests for comment regarding the lawsuit. However, the legal challenge highlights the ongoing tensions between the U. S. and Canada over trade policies. In response to Trump's tariffs, Canada implemented its own 'dollar for dollar' tariffs on U. S. goods.

Legal Arguments and Economic Impact

The lawsuit contends that even if the 1930 law remains valid, the Trump administration failed to meet its requirements when imposing the tariffs on Canada. The law allows for tariff action only if there is a factual finding that a foreign country is imposing unreasonable charges or trade limitations on U. S. products, or if its customs rules unfairly disadvantage the U. S. The lawsuit argues that the Canadian actions cited by Trump do not meet these criteria.

Specifically, the lawsuit points out that some of Canada's actions were responses to Trump's own tariffs, including those the Supreme Court deemed unlawful. It also highlights that the dairy quota terms negotiated in the USMCA trade deal actually provide better access for American cheese to Canada than most other countries receive.

Gellert Global, one of the top U. S. food importers, reported importing $71 million worth of Canadian cheese in 2025 alone. Under the USMCA, the company paid no tariffs on these imports. However, the Section 338 tariffs now impose a 50% duty on the entered value of its Canadian cheese, estimated at $40 million per year. Gellert Global has stated that while it plans to absorb these costs through the end of the year, the situation is unsustainable in the long term.

The company warns that if the tariffs persist, it will be forced to raise product prices, leading to potential losses in sales, decreased customer loyalty, and supply chain disruptions. These economic impacts could result in producers scaling down or going out of business due to increased costs.

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