Gellert Global Group filed the lawsuit on Tuesday, October 20, with representation from the Liberty Justice Center. The New York-based court has been asked to halt collection of the duties, declare them unlawful and order refunds with interest for importers that have already paid.
The complaint targets Trump’s use of Section 338 of the Tariff Act of 1930, a provision allowing action against countries found to discriminate against American commerce. The administration invoked the provision in August after trade negotiations with Canada broke down, imposing a 50 per cent tariff on a range of products valued at approximately $20 billion.
Gellert, a third-generation family business importing and distributing food products, including Canadian cheese, maintains that the president cannot rely on the nearly century-old provision to bypass restrictions imposed by subsequent trade legislation. Its lawyers contend that Congress established more specific procedures governing trade retaliation and investigations, limiting the executive branch’s discretion.
The lawsuit also seeks certification as a class action on behalf of other US importers affected by the measures. The proposed class covers businesses that paid or must pay duties on qualifying imports from August 22. Certification has not been granted, and the litigation remains pending.
Alongside its complaint, the company submitted motions seeking a preliminary injunction to suspend tariff collection while the dispute proceeds and summary judgment in its favour. Neither request amounts to a court ruling, and the challenged duties remain applicable unless a judge orders otherwise.
Sara Albrecht, chief executive of the Liberty Justice Center, said the dispute concerns the limits of presidential power rather than the economic merits of tariffs. She argued that the executive branch cannot revive an unused statute to impose broad duties or import prohibitions without observing congressional safeguards.
The White House has defended the measures as a response to Canadian practices it considers discriminatory towards American products. Washington has identified restrictions affecting sectors including dairy, alcoholic beverages and motor vehicles as grounds for action. Those allegations form part of the administration’s justification, rather than findings made by the court in the present case.
The tariff dispute has also generated retaliatory action by Ottawa, adding pressure to commercial relations between the neighbouring countries. Canada responded to the August measures with countermeasures matching their value, while businesses trading across the border faced additional costs and uncertainty over future shipments.
Trump subsequently expanded the restrictions. Measures announced in September prohibited imports of certain Canadian products, including alcoholic beverages, dairy goods and motor vehicle products. The legal challenge addresses the administration’s use of Section 338 for both tariff and import restrictions, although the immediate injunction request focuses on collection of duties.
The case adds another test of the administration’s interpretation of statutes authorising presidential trade action. Earlier litigation concerning tariffs imposed under the International Emergency Economic Powers Act resulted in a Supreme Court ruling against that use of emergency powers. Separate disputes have examined tariffs imposed under Section 122 of the Trade Act of 1974.
Those decisions do not automatically determine the legality of the Canadian measures, which rest on a different statutory provision. The court must assess the language and scope of Section 338 and consider the company’s argument that later trade laws constrain its operation.
Gellert says the additional duties have disrupted established supply arrangements and increased the cost of bringing Canadian products into the American market. Its position reflects the direct exposure of importers, which ordinarily pay customs duties when goods enter the United States, even when tariff policy is intended to influence foreign governments.
The complaint is registered as Gellert Global Group Corp v Trump, case number 26-04636. The Court of International Trade, based in New York, has specialised jurisdiction over customs and international trade disputes. The Liberty Justice Center has identified Jeffrey Schwab and Reilly Stephens among the lawyers working on the challenge.
A separate proposed subclass concerns duties paid on specified products entering the United States between September 15 and October 8. Its eligibility and the broader request for collective treatment remain matters for the court to decide. The proposed subclass concerns a defined period of import entries and is distinct from the wider group.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
