Politics
New Jersey cheese importer challenges Trump’s use of 1930 trade law
Gellert Global Group is asking a specialized federal trade court to block 50% tariffs on Canadian goods imposed under a law that has never been used in a trade dispute. The case could test the limits of presidential power over tariffs.
A New Jersey food importer has sued the Trump administration over its use of a rarely invoked 1930 law to impose 50% tariffs on $20 billion worth of Canadian goods.
Gellert Global Group, a third-generation family business that imports Canadian cheese, filed the lawsuit Tuesday in the U.S. Court of International Trade in New York. The company is challenging President Donald Trump’s authority to use Section 338 of the Tariff Act of 1930 for the tariffs.
Trump invoked the law in August, citing what his administration says is discrimination by Canada against U.S. dairy, auto and alcoholic beverage products. Ottawa responded with tariffs of its own, further straining relations between the neighboring countries.
Section 338 has never been used in a trade dispute, and its authority has not been tested in court. The Liberty Justice Center, which represents Gellert, argues that later trade laws superseded the provision. Those newer laws grant presidents some tariff powers but set limits and require investigations or other procedures in certain circumstances.
“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, the group’s chair.
The lawsuit comes amid a broader series of legal challenges to Trump’s tariff policies. In February, the Supreme Court struck down tariffs the administration had imposed under a 1977 law, after which the government was required to refund billions of dollars to importers. The administration has since pursued other legal authorities for tariffs, including measures targeting goods it says are linked to forced labor; those tariffs are also being challenged in court.
Last month, Trump announced a separate ban on nearly $1 billion in Canadian products, including alcoholic beverages, dairy products and motorcycles.
The White House and the Office of the U.S. Trade Representative did not immediately comment on Gellert’s lawsuit.