United States President Donald Trump is facing a fresh legal challenge regarding his administration's trade policies. The Liberty Justice Center has filed a lawsuit in the US Court of International Trade contesting the legality of recent import taxes placed on Canadian merchandise.
The litigation follows the breakdown of bilateral trade discussions between Washington and Ottawa in August. In response to the stalled negotiations, the White House introduced a 50 percent levy affecting approximately 20 billion dollars worth of Canadian goods, ranging from dairy and wine to hockey sticks.
The legal challenge was brought forward on behalf of the Gellert Global Group, a New Jersey-based family business that imports Canadian cheese. According to the company, the steep import taxes have caused immediate and severe disruptions to its operations and supply chain. Thomas Gellert, co-chief executive of the firm, stated that the levies have abruptly damaged multi-generational relationships with industry partners and introduced widespread financial uncertainty.
The lawsuit targets the administration's reliance on Section 338 of the Tariff Act of 1930. This nearly century-old provision was designed to safeguard domestic commerce against foreign discrimination. However, the plaintiffs argue that the executive branch has misinterpreted the statute, asserting it does not grant the authority to implement sweeping import restrictions or broad tariffs simply because a trade dispute occurs.
Furthermore, the legal filing contends that the White House failed to respect a mandatory 30-day waiting period outlined in Section 338 before beginning collections. The lawsuit also claims that this older statute has been superseded by newer legislation, specifically Section 301 of the Trade Act of 1974.
Sara Albrecht, chief executive of the Liberty Justice Center, emphasized that the action is intended to address the constitutional separation of powers rather than trade policy preferences. She stated that the executive branch should not be permitted to utilize dormant legislation to bypass congressional limits on tariff authority.
In addition to requesting that the court declare the levies unlawful, the lawsuit seeks a preliminary injunction to halt the ongoing collection of the taxes. It also petitions the court to order full refunds, complete with interest, for impacted importers.
The Liberty Justice Center has separately filed a motion seeking refunds for duties already collected. This marks the fourth time the legal group has challenged administration tariffs in court, following a prior successful ruling against import taxes implemented under the International Emergency Economic Powers Act.
The White House has been approached for comment regarding the new legal action. The ongoing trade friction has also prompted retaliatory measures from Canada, creating additional economic challenges for businesses operating on both sides of the border.
Reporting based on coverage first published by BBC News. Read the original report at BBC News.
