A legal challenge has been initiated against the tariffs imposed by U.S. President Donald Trump on Canada. The lawsuit, filed at the United States Court of International Trade by the non-profit Liberty Justice Center representing U.S. food importer Gellert Global Group, argues that Trump’s utilization of a trade statute from the 1930s exceeds his presidential authority.
Liberty Justice Center CEO Sara Albrecht, speaking from Chicago in an interview with CBC’s Katie Simpson, expressed concerns over the use of Section 338, a dormant statute never previously activated. Trump applied Section 338 to impose a 50 percent tariff on various Canadian goods following failed trade negotiations in August. Subsequently, the same statute was employed to prohibit the import of additional Canadian products, including motorcycles, alcohol, and dairy items.
The lawsuit contends that the tariffs imposed by the Trump administration do not align with Canadian policies. The White House justifies its actions under Section 338, claiming it allows the president to levy tariffs when U.S. exporters face disadvantages compared to exporters from other nations, despite the statute never being utilized for such purposes before.
Allegedly, the latest tariffs are in response to provincial bans on U.S. liquor, Canada’s dairy supply management system, and quotas on specific U.S. vehicles. The lawsuit argues that these Canadian policies do not warrant the broad tariffs imposed by the Trump administration.
The impact of the tariffs extends beyond Canada, affecting American businesses as well. Gellert Global Group’s co-CEO Thomas Gellert expressed concerns over the disruption caused by the tariffs to their longstanding relationships within the food industry. The company faces challenges from both the imposed tariffs on Canadian imports and retaliatory tariffs imposed by Canada on American-made products.
The lawsuit seeks a declaration that the tariffs are unlawful and demands a refund. Notably, the Liberty Justice Center was previously involved in legal actions against Trump’s use of the International Economic Emergency Powers Act of 1977 for tariffs on Canada, Mexico, and China. This new lawsuit raises broader concerns about presidential authority to impose tariffs without significant congressional oversight, aiming to challenge the legality of the tariffs and their implications on trade relationships.