A New Jersey-based food importer has filed a federal trade lawsuit challenging President Donald Trump’s 50% tariffs on Canadian products. The plaintiff argues that the administration vastly exceeded its legal authority. Filed on October 20, 2026, in the U.S. Court of International Trade, the high-stakes legal case seeks to halt the duties immediately and recover past payments with interest. This escalates the ongoing dispute over Washington’s aggressive trade policies toward Canada.
The plaintiff, Gellert Global Group, is represented by the Liberty Justice Center. The lawsuit contends that the administration improperly invoked Section 338 of the Tariff Act of 1930 to impose sweeping duties on Canadian goods. These tariffs affect approximately $20 billion worth of Canadian imports, including popular consumer products such as cheese, wine, honey, wigs, and hockey sticks, following the breakdown of bilateral trade negotiations earlier in the year.
Challenging a Depression-Era Statute
President Trump utilized Section 338 of the Tariff Act of 1930 in July, marking the first time in its 96-year history that the dormant statute has been used to impose a tariff. The measures took effect on August 22 after last-ditch trade talks in Washington collapsed, prompting Canada to retaliate with matching dollar-for-dollar duties on U.S. products.
The civil complaint filed by the Liberty Justice Center argues that Section 338 is a relic of retaliation-based tariff policy that has been implicitly repealed by subsequent legislation, such as Section 301 of the Trade Act of 1974. , the lawsuit claims the administration failed to meet the strict factual requirements outlined in the 1930 law, which permits tariff actions only upon proving that a foreign government unequally imposes unreasonable charges or trade limitations.
“This case is not about the president. It is about the presidency. 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.” – Sara Albrecht, CEO of the Liberty Justice Center
Impact on Importers and Supply Chains
Gellert Global Group boasts more than $1.7 billion in annual revenue and relies heavily on cross-border trade. In 2025 alone, the company imported $71 million worth of Canadian cheese-including sheep and goat’s milk cheese, mascarpone, brie, camembert, and the hybrid cheese borgonzola. Under the new 50% duty, the company estimates it faces roughly $40 million per year in added costs.
Co-chief executive Thomas Gellert noted that the family business has spent generations building trusted relationships across the international food sector. According to the complaint, while the company plans to absorb the tariff costs through the end of the year, the financial burden is unsustainable long term. It will ultimately result in higher consumer prices, reduced sales, and supply chain disruptions.
Broader Legal Context and Next Steps
The Liberty Justice Center is no stranger to battling executive trade policy. The legal group previously dealt a major blow to the administration’s trade agenda by successfully contesting sweeping “reciprocal” tariffs at the Supreme Court. The Court struck those duties down in February and forced the federal government to begin refunding an estimated $166 billion.
In addition to seeking a formal declaration that the Section 338 tariffs are unlawful, the latest lawsuit includes a motion for a preliminary injunction to block ongoing tariff collection. Legal experts suggest the outcome of this case could permanently constrain executive power regarding unilateral trade actions, returning strict oversight over import duties to the United States Congress.
