The Trump administration is facing a legal challenge in federal court over its decision to impose steep 50% tariffs on a wide range of Canadian goods, a move that deepens the ongoing trade friction between the United States and one of its largest economic partners.
The lawsuit was filed on Tuesday in the US Court of International Trade in New York. Brought forward by food import business Gellert Global Group Corp., the legal action argues that President Donald Trump exceeded his executive authority by invoking an obscure and previously unused provision of American trade law to enact the levies.
According to the complaint, the administration relied on Section 338 of the Smoot-Hawley Tariff Act of 1930 to justify the duties. The plaintiff contends that utilizing this decades-old, dormant section represents an unlawful expansion of presidential taxing power and forms part of a broader pattern of unauthorized financial measures by the administration.
The 50% tariffs on Canadian products officially took effect in August. Following their initial implementation, the administration pursued subsequent presidential actions that both expanded the roster of goods covered by the levies and, in later phases, prohibited the importation of certain specific items entirely.
The case is docketed as Gellert Global Group Corp v. Trump, 26-cv-4636, in the US Court of International Trade.
