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Gellert Global sues over Trump’s 50% tariffs on Canadian goods

The New Jersey food importer is asking a US trade court to block the duties and refund payments, arguing that the administration exceeded its authority under a 1930 law.

The James L. Watson United States Court of International Trade building in Manhattan, New York.
The James L. Watson United States Court of International Trade building in Manhattan, New York, photographed in 2019. File photograph. Ajay Suresh from New York, NY, USA — Ajay Suresh, United States Court of International Trade (48126614652).jpg, CC BY 2.0, via Wikimedia Commons (resized and converted to WebP). CC BY 2.0.Image sourceImage licence: CC BY 2.0
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Gellert Global Group, a New Jersey food importer, filed a lawsuit in the US Court of International Trade on 20 October challenging President Donald Trump’s 50% tariffs on Canadian goods. The company says the duty on its Canadian cheese imports will cost it an estimated $40 million a year, making the dispute a direct test of the administration’s use of a 1930 trade law.

Represented by the Liberty Justice Center, Gellert is asking the court to declare the tariffs unlawful, block their enforcement and order refunds, with interest, for duties already paid. The legal group has also moved for a preliminary injunction to stop collection while the case proceeds, the BBC reported.

Why Gellert disputes the Canadian tariffs

The complaint argues that Section 338 of the Tariff Act of 1930, which the administration invoked, was superseded by Section 301 of the Trade Act of 1974. It argues alternatively that, even if Section 338 remains in force, the administration failed to establish the legal grounds required to impose the duties, according to the BBC.

The administration cited alleged unfair Canadian treatment of US motor vehicle, alcohol and dairy interests when Trump signed three tariff proclamations on 20 July, CNBC reported. The complaint disputes the premise that the Canadian measures amount to discrimination: it says some were responses to US tariffs, while another concerned dairy quota terms negotiated under the US–Mexico–Canada trade agreement.

The duties took effect on 22 August after US–Canada trade talks broke down. The BBC reported that the levy covers about $20 billion of Canadian goods, including wine, dairy products and hockey sticks. Canada subsequently imposed retaliatory tariffs on US goods, CNBC reported.

Cost to the cheese importer

Gellert imported $71 million of Canadian cheese in 2025, according to figures in the complaint reported by CNBC. The company says those imports previously entered without tariffs under the US–Mexico–Canada trade agreement. Its estimate of $40 million in annual duties is a projection in the suit, not a court finding.

The family business also sells American-made cheese in Canada, where it faces retaliatory tariffs, the BBC reported. Co-chief executive Thomas Gellert said the US duties disrupt long-standing supplier and customer relationships and create costs throughout the supply chain.

The Liberty Justice Center has brought other challenges to Trump’s tariffs. It said this case concerns whether the executive branch followed the limits Congress set on tariff powers. The White House did not immediately respond to CNBC’s request for comment on the lawsuit.

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