Gellert Global Group, a New Jersey-based food importer, has filed a lawsuit against US President Donald Trump, challenging the legality of his 50 percent tariffs on Canadian goods. The lawsuit, submitted on Tuesday to the US Court of International Trade in New York, alleges that Trump overstepped his authority by imposing these tariffs without congressional approval.
The tariffs, which target a broad range of Canadian products including dairy, furniture, clothing, and wine, have significantly impacted Gellert's operations. The company claims that between September 16 and October 11, it paid over $520,000 in duties. According to Thomas Gellert, co-chief executive officer of Gellert Global Group, the tariffs have disrupted long-standing relationships with suppliers and created widespread uncertainty in the supply chain.
The legal challenge focuses on Trump's use of a Depression-era law, the Smoot-Hawley Tariff Act of 1930, specifically Section 338, to justify the tariffs. This provision allows the president to impose tariffs of up to 50 percent on imports from countries that discriminate against American businesses. However, the lawsuit argues that this law is outdated and has been superseded by more recent legislation, such as Section 301 of the Trade Act of 1974, which includes requirements for investigations and public comment that were allegedly bypassed by the Trump administration.
The tariffs were initially introduced over the summer, with Trump accusing Canada of unfair practices against American-made cars, alcohol, and dairy products. In September, the scope of the tariffs was expanded in response to Canadian retaliatory measures. The lawsuit questions the rationale behind taxing Canadian cheese in disputes primarily involving alcohol and automotive sectors.
Sara Albrecht, chairman and CEO of the Liberty Justice Center, the nonprofit legal organization representing Gellert, emphasized that no president should have the unchecked power to impose such sweeping tariffs without the constraints set by Congress. The lawsuit also highlights procedural missteps, noting that the administration only waited seven days before collecting tariffs on cheese, instead of the required 30 days.
The White House has not yet responded to requests for comment. The case adds to a series of legal challenges against Trump's tariff policies. Another challenge concerning tariffs related to alleged forced labor in international trade remains unresolved.
Gellert Global Group is seeking a court declaration that the tariffs are illegal, an injunction to stop their collection, and refunds with interest for affected importers. The outcome of this lawsuit could have significant implications for US-Canada trade relations and the broader application of tariff laws.
