A family-run American food importer has launched a federal legal challenge against the Trump administration over 50% tariffs on certain Canadian goods, arguing the duties are unlawful and threatening to drain millions from the company’s bottom line.
Gellert Global Group, a New Jersey-based food importing company, filed the lawsuit in the U.S. Court of International Trade with representation from the Liberty Justice Center. The legal action targets duties that the company estimates could cost it approximately $40 million each year on Canadian cheese imports alone.
The dispute stems from action taken over the summer, when President Donald Trump invoked Section 338 of the Tariff Act of 1930 to levy 50% tariffs on specific Canadian imports. In September, the administration expanded the list of covered merchandise to encompass cheeses imported by Gellert Global Group. The lawsuit asks the court to declare the tariffs illegal, halt their collection, and order refunds with interest.
According to court filings, the company previously imported Canadian cheese duty-free under the terms of the United States-Mexico-Canada Agreement (USMCA). Following the policy shift, the financial impact was immediate. On September 28, the company brought in a shipment of goat’s milk cheese valued at roughly $120,000 and incurred more than $60,000 in tariffs.
Thomas Gellert, co-CEO of Gellert Global Group, stated that the sudden levies are disrupting commercial relationships that took generations to build. He noted that the tariffs introduce expenses and unpredictability that cascade throughout the supply chain.
The legal challenge contends that the administration is misapplying the 1930 Tariff Act far beyond its intended framework, utilizing it to impose sweeping tariffs and import restrictions devoid of the constraints mandated by Congress. Sara Albrecht, chairman and CEO of the Liberty Justice Center, asserted that the case transcends the individual presidency to address executive authority over trade.
Administration officials maintain that the tariffs were implemented as a countermeasure against discriminatory Canadian trade practices that harm American commercial interests. However, the lawsuit argues that the levies fail to offset the alleged discrimination because they target products entirely unrelated to the specific Canadian policies under dispute.
This litigation represents the fourth legal challenge brought by the Liberty Justice Center against the administration’s tariff policies using varying statutory mechanisms, following prior actions involving the International Emergency Economic Powers Act alongside Sections 122 and 301 of federal trade law. Earlier this year, the Supreme Court ruled that IEEPA did not authorize the particular tariffs challenged in that proceeding, though the administration has continued leveraging alternative trade statutes. A federal trade court also ruled against replacement tariffs implemented under Section 122—a decision the administration has appealed—while a separate challenge regarding Section 301 remains pending.
The broader trade conflict between Washington and Ottawa has intensified alongside these legal battles. Canadian Prime Minister Mark Carney suspended trade negotiations in August, citing unfair last-minute modifications introduced by the U.S. to a potential agreement. The Office of the U.S. Trade Representative contested that characterization, contending that Canada walked away from previously finalized terms. In response to the U.S. duties, Canada has enacted retaliatory tariffs on select American products.
