New Jersey Food Importer Sues Over Trump's 50% Tariffs on Canadian Goods, Saying Cheese Duties Could Cost $40 Million a Year
Gellert Global Group, backed by the Liberty Justice Center, argues the 1930 law the White House used was never meant for sweeping tariffs. The administration says the duties answer discriminatory Canadian trade practices.
A family-run food importer has taken the administration to court over its 50% tariffs on certain Canadian goods.
Gellert Global Group of New Jersey filed the suit Tuesday in the U.S. Court of International Trade, represented by the Liberty Justice Center. It estimates the duties on Canadian cheese alone could cost it about $40 million a year. The suit asks the court to declare the tariffs unlawful, stop their collection and order refunds with interest.
The law. Trump used Section 338 of the Tariff Act of 1930 over the summer to impose the tariffs. The list of covered goods grew in September to include cheeses Gellert imports. The importer argues the White House is stretching the statute beyond its purpose and hitting products unrelated to the Canadian policies it set out to answer. "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, chairman and CEO of the Liberty Justice Center.
The cost. According to the complaint, Gellert used to bring in Canadian cheese duty-free under the USMCA. On Sept. 28 it imported about $120,000 of goat's milk cheese and paid over $60,000 in tariffs. Co-CEO Thomas Gellert said the tariffs "disrupt those relationships overnight."
The administration's side. Fox says the White House has said the tariffs respond to discriminatory Canadian trade practices that hurt American businesses. Fox Business has asked it for comment on the suit.
The record. This is the Liberty Justice Center's fourth challenge to the administration's tariffs, after cases involving IEEPA and Sections 122 and 301. Fox notes the Supreme Court ruled in February that IEEPA did not authorize the tariffs in that case, and that the administration kept imposing duties under other laws. A trade court also ruled against the replacement Section 122 tariffs, and the administration appealed. The Section 301 challenge is pending.
The dispute. Canadian Prime Minister Mark Carney suspended trade talks in August, saying the U.S. made unfair last-minute changes. The U.S. Trade Representative says Canada refused to finalize terms already agreed. Canada has put retaliatory tariffs on some U.S. products.
Caveats. This is a complaint, one side's argument. No court has ruled on it.