The key facts

  • Gellert Global Group filed suit in the US Court of International Trade through the Liberty Justice Center, on its own behalf and on behalf of a class of affected importers.
  • In the plaintiff's view, Section 338 of the Tariff Act of 1930 has been superseded by Section 301 of the Trade Act of 1974, and the administration also violated the mandatory 30-day waiting period.
  • Canadian cheeses were added to the tariff list on September 8, with duties collected starting September 15; motions for a preliminary injunction and summary judgment in favor of Gellert have been filed.

Lawsuit against 50% tariffs

US food importer Gellert Global Group on Tuesday filed a lawsuit against the Trump administration, challenging the 50% tariffs on certain Canadian goods. The company argues that the duties exceed presidential authority. The Liberty Justice Center filed the suit on behalf of Gellert and a proposed class of affected importers in the US Court of International Trade.

Demands and legal arguments

The plaintiff asks the court to declare the tariffs unlawful, stop their collection, and order the refund of amounts paid with interest. The duties were imposed under Section 338 of the Tariff Act of 1930, aimed at countering discrimination against American trade by other countries. In the plaintiff's view, Congress superseded this provision with Section 301 of the Trade Act of 1974, which provides for investigations, public participation, and other safeguards when responding to unfair trade practices. The lawsuit also asserts that the administration failed to observe the mandatory 30-day waiting period when expanding the tariffs.

Circumstances of the duties' imposition

Canadian cheeses imported by Gellert were added to the tariff list on September 8, but duties began to be collected on September 15, the center reports. The plaintiff challenges the administration's reliance on Canada's retaliatory measures and dairy policies regulated under the USMCA agreement. According to the lawsuit, some targeted goods are unrelated to the alleged discrimination: for example, Canadian cheeses were subjected to duties tied to disputes over alcohol policy and auto tariffs.

About the company and next steps

Gellert is a family food business that imports and distributes products in the US and also helps American manufacturers enter foreign markets. The center has also filed motions for a preliminary judicial injunction against collecting the duties and for summary proceedings with judgment in favor of Gellert.