A legal challenge against the tariffs imposed by U.S. President Donald Trump on Canada has been initiated in the United States Court of International Trade. The lawsuit was filed on Tuesday by the non-profit organization Liberty Justice Center on behalf of Gellert Global Group, a U.S. food importer. The lawsuit argues that Trump’s utilization of Section 338, a trade statute from the 1930s that has never been previously enforced, exceeds his authority as president.
Trump invoked Section 338 to impose a 50 percent tariff on various Canadian products following failed trade negotiations in August. Subsequently, the same statute was utilized to prohibit the import of additional Canadian goods, including motorcycles, alcohol, and dairy items. The lawsuit contends that Canadian policies do not warrant the extensive tariffs imposed by the Trump administration.
The White House has defended Section 338 as granting the president the power to impose tariffs when a country disadvantages U.S. exporters compared to exporters from other nations, despite the statute never having been utilized for this purpose before. U.S. officials have linked the recent duties to provincial restrictions on U.S. liquor, Canada’s managed dairy system, and quotas on specific U.S. vehicles.
The legal action challenges the rationale behind the tariffs and calls for their repeal. It also highlights the broader implications of the tariffs beyond the U.S.-Canada trade relationship. The lawsuit seeks a judicial declaration that the tariffs are illegal and demands a refund for affected parties. The Liberty Justice Center has a history of legal involvement in challenging Trump’s tariff policies, previously contesting the use of the International Economic Emergency Powers Act of 1977 for imposing tariffs on Canada, Mexico, and China.