Trump tariffs on selected Canadian goods are facing a new legal challenge from a U.S. food importer that says the administration exceeded its authority and failed to follow required procedures.
Gellert Global Group filed the lawsuit on October 20, 2026, in the U.S. Court of International Trade in New York.
The company is asking the court to block collection of the duties, declare them unlawful and order refunds with interest for affected importers.
The case, Gellert Global Group Corp. v.
Trump, also seeks to represent a proposed class of U.S. importers that have paid or may be required to pay the tariffs.
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What the lawsuit challenges
The dispute centres on Section 338 of the Tariff Act of 1930, a provision the Trump administration used this year to impose additional duties of up to 50 per cent on certain Canadian products.
The administration says the measures respond to what it describes as discriminatory treatment of American goods by Canada, including policies involving automobiles, alcoholic beverages and dairy products.
The White House announced three Section 338 actions against Canada on July 20, 2026.
The measures later took effect on Canadian imports covered by the presidential proclamations.
Products affected by the measures have included certain cheeses, alcoholic beverages, furniture, hockey equipment, paper products and other consumer goods.
Later proclamations also imposed import restrictions on specified Canadian products.
Gellert imports and distributes food products in the United States, including Canadian cheese.
The company says the 50 per cent duty has increased costs for its business and disrupted relationships with suppliers, retailers and customers.
Trump tariffs face questions over presidential power
The lawsuit argues that tariff-making authority belongs primarily to Congress and that Section 338 cannot be treated as an unlimited delegation of power to the president.
Gellert’s legal team also argues that Congress created a more detailed system under Section 301 of the Trade Act of 1974 for responding to unfair foreign trade practices.
That process generally includes investigations and opportunities for public participation.
The complaint asks the court to determine whether the later law limited or displaced the administration’s use of the older Section 338 authority.
Another argument concerns the definition of discrimination.
The lawsuit says the administration relied partly on Canada’s retaliatory trade measures and disputes governed by the Canada-United States-Mexico Agreement, rather than demonstrating the type of discrimination required by Section 338.
The company also argues that some products were targeted even though they were not directly connected to the conduct cited by the administration.
Importers challenge the timing of the duties
Gellert’s filing alleges that the administration failed to observe a 30-day waiting period before applying tariffs to newly added products.
According to the company’s legal filing, certain cheese products were added to the tariff list on September 8, but collection was scheduled to begin on September 15.
The company says that seven-day interval did not satisfy the statute’s waiting-period requirement.
Gellert has filed motions for a preliminary injunction and summary judgment alongside its complaint.
A preliminary injunction would seek to stop tariff collection while the case proceeds, while summary judgment would ask the court to resolve the legal dispute without a full trial if there are no material facts requiring one.
Why the case matters for Canadian exporters
The lawsuit was filed by an American importer, but its outcome could affect Canadian manufacturers, farmers, food processors and exporters whose products enter the U.S. market.
If the court blocks the duties, importers could seek refunds for tariffs already paid, depending on the court’s order and the status of individual customs entries.
A ruling against the administration could also limit how future presidents use dormant trade statutes to impose tariffs without new congressional legislation.
A ruling in favour of the government would leave the Section 338 measures in place and could strengthen the administration’s position in other disputes involving presidential tariff authority.
Canada-U.S. trade dispute continues
The case adds another legal front to the Canada-U.S. trade dispute, which has expanded through tariffs, countermeasures and restrictions on selected imports.
Canadian officials have rejected the U.S. characterization of Canadian trade policies and have imposed retaliatory measures against American goods.
The latest lawsuit does not ask the court to decide whether Canada’s trade policies are fair.
Instead, it asks whether the Trump administration used the correct legal authority and followed the conditions imposed by Congress.
The U.S. government will have an opportunity to respond before the court decides whether to grant immediate relief or move directly toward briefing on the merits.
No final ruling had been issued in the case as of October 20, 2026.
Frequently Asked Questions
What is the new lawsuit against Trump’s Canada tariffs about?
Gellert Global Group is challenging the 50% tariffs imposed on certain Canadian goods under Section 338 of the Tariff Act of 1930. It says the administration exceeded its authority and failed to follow statutory requirements.
Who filed the case?
Gellert Global Group, a U.S. food importer and distributor, filed the case in the U.S. Court of International Trade on October 20, 2026. The Liberty Justice Center is representing the company.
Which Canadian products are affected by the tariffs?
The measures cover selected Canadian goods, including certain cheeses, alcoholic beverages, furniture, hockey equipment, paper products and other consumer items. Product coverage depends on the presidential proclamation and customs classification.
What does Gellert want the court to do?
The company is seeking an order stopping tariff collection, a declaration that the measures are unlawful and refunds with interest for affected importers. It has also requested preliminary relief while the case proceeds.
Do the tariffs remain in effect while the lawsuit is pending?
Unless the court grants an injunction or the administration changes the measures, the tariffs remain subject to the current presidential proclamations while the case is litigated.
Fact-Checked: Key facts were checked against the Liberty Justice Center case materials and official U.S. government information on the Section 338 tariff actions.
Disclaimer: The lawsuit contains allegations that have not been finally decided by the court, and tariff coverage may change through later government action or judicial orders.