American Food Importer Sues Federal Government Over Unprecedented Canadian Tariffs

2026-10-22 politics

Newark, Thursday, 22 October 2026.
A New Jersey food importer has sued to block 50% tariffs on Canadian imports, arguing the administration unlawfully resurrected a dormant 1930 law to bypass congressional authority.

Litigation Filed in Court of International Trade

On 2026-10-20, the Gellert Global Group, a New Jersey-based food importer, filed a lawsuit in the U.S. Court of International Trade challenging the Trump administration’s authority to impose 50% tariffs on Canadian goods [2][4]. The legal action was brought with representation from the Liberty Justice Center, arguing that the President lacks the power to unilaterally invoke Section 338 of the Tariff Act of 1930 without congressional authorization [1][6]. While most reports confirm the filing date as 2026-10-20, some sources indicate a filing date of 2026-10-13, creating a discrepancy in the public record regarding the exact timeline of the legal challenge [alert! ‘Conflicting reports on filing date between 13 Oct and 20 Oct 2026’] [1][3]. The lawsuit seeks to block the enforcement of tariffs affecting approximately $20 billion worth of Canadian imports, including dairy, alcohol, and automotive products [2][7]. Thomas Gellert, co-chief executive of Gellert Global Group, stated that these tariffs disrupt longstanding supply chain relationships and create immediate costs for American businesses [3][7]. The White House and the Office of the U.S. Trade Representative did not respond to requests for comment regarding the lawsuit by the time of reporting [6].

Legal Arguments and Constitutional Authority

The core of the legal challenge asserts that Section 338 of the Tariff Act of 1930 has been superseded by subsequent trade legislation, specifically Section 301 of the Trade Act of 1974 [3][7]. Sara Albrecht, CEO of the Liberty Justice Center, argued that no president should have the power to pull a dormant statute off the shelf to impose sweeping tariffs without the limits Congress required [1][6]. The plaintiffs contend that the U.S. Constitution originally granted tariff authority to Congress, and subsequent laws only ceded limited power to the president under specific constraints such as national security threats [6][7]. This case follows a February 2026 Supreme Court ruling that struck down the Trump administration’s use of a 1977 law to impose tariffs based on trade deficits, forcing the government to refund billions of dollars to importers [1][6]. The current lawsuit alleges the administration failed to adhere to the mandatory 30-day waiting period required by Section 338, as tariffs on products including cheese were added to the list only one week prior to collection [3][7]. Legal counsel for the plaintiff noted that the administration cannot skip statutory protections by reaching for a 1930 statute that no president had ever used to impose a tariff [7].

Economic Impact and Trade Retaliation

Gellert Global Group reports over $1.7 billion in annual revenue and imported $71 million in Canadian cheese in 2025, facing an estimated $40 million in annual costs under the new 50% duty measures [2][4]. The imposed 50% tariff represents a 400 percent increase over the 10% to 12.5% tariffs imposed on dozens of trading partners in July 2026 citing forced labor concerns [6]. Between 2026-09-16 and 2026-10-11, Gellert Global Group reported paying over $520,000 in duties under the new tariff regime, highlighting the immediate financial strain [7]. In response to the U.S. actions, Canadian Prime Minister Mark Carney implemented dollar-for-dollar retaliatory tariffs on U.S. goods in September 2026 [3][6]. The administration invoked Section 338 to sanction Canada, alleging discrimination against U.S. dairy, auto, and alcoholic beverage sectors, though the plaintiff argues these policies are governed by the USMCA [1][7]. If the tariffs continue, Gellert warned it will be forced to raise prices, resulting in lost sales and supply chain interruptions as producers scale down [2]. The Court of International Trade is currently reviewing the case to determine if the administration must refund collected duties or if the executive action remains constitutional [4].

Sources

International Trade Tariffs