Gellert Global Sues Trump Administration Over Canadian Tariffs

A dispute over presidential authority to impose import duties has reached the U.S. Court of International Trade, where Gellert Global Group and a proposed class of importers are challenging the Trump administration's 50% tariffs on Canadian goods. Filed on October 20, 2026, by the Liberty Justice Center, the lawsuit argues that the administration misused a Depression-era law, increasing costs for American businesses, suppliers and customers.

The complaint challenges the administration's reliance on Section 338 of the Tariff Act of 1930, part of the Smoot-Hawley Tariff Act. According to the Liberty Justice Center, no president had previously used the provision to impose tariffs before this year.

Section 338 authorizes tariffs to counter specific foreign discrimination against U.S. commerce. The lawsuit argues that the Canadian policies cited by the administration do not justify the broad duties imposed, noting that two measures followed the president's own tariffs and a third concerns Canadian dairy policies governed by the U.S.-Mexico-Canada Agreement (USMCA).

The complaint also challenges the inclusion of Canadian cheese on tariff lists addressing Canadian liquor policies and automobile tariffs. The Liberty Justice Center argues that the administration's dairy proclamation does not cover cheese, making the additional duties improper.

Sara Albrecht, Chairman and CEO of the Liberty Justice Center, said the case concerns the limits of executive power rather than the individual president.

"This case is not about the president. It is about the presidency. No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required," said Sara Albrecht, Chairman and CEO of the Liberty Justice Center.

The lawsuit further argues that Section 301 of the Trade Act of 1974 superseded Section 338 by establishing procedures and safeguards for responding to unfair foreign trade practices. Those protections include an investigation and public comment, which the organization says the administration cannot bypass by invoking the older statute.

Jeffrey M. Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center, said the administration must follow the procedures established by Congress.

"Congress already gave the executive branch a tool for responding to unfair foreign trade practices: Section 301, which requires an investigation, public comment and other safeguards. The administration cannot skip those protections by reaching for a 1930 statute that no president had ever used to impose a tariff," said Jeffrey M. Schwab, Senior Counsel and Director of Litigation at the Liberty Justice Center.

The complaint also alleges that the administration violated Section 338's mandatory 30-day waiting period. According to the lawsuit, Canadian cheeses imported by Gellert were added to the tariff list on September 8, but duty collection began just seven days later. The company is seeking refunds of tariffs collected before the waiting period expired.

Gellert Global Group says the duties affect both its imports and its cross-border sales. The company pays a 50% tariff on Canadian cheeses it imports, while Canadian retaliatory tariffs affect American-made cheeses sold in Canada by its Canadian division.

One supply chain described in the lawsuit involves a Canadian cheese supplier that purchases milk from dairy farmers in upstate New York, processes it into brie in Canada and ships the finished product back to the United States. The company argues that the tariffs burden American farmers and businesses on both sides of the transaction.

Thomas Gellert, Co-Chief Executive Officer of Gellert Global Group, said the duties have disrupted established commercial relationships and introduced uncertainty across the food supply chain.

"Gellert Global Group has spent generations building trusted relationships with suppliers, customers and partners across the food industry. These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain," said Thomas Gellert, Co-Chief Executive Officer of Gellert Global Group.

The lawsuit warns that an expansive interpretation of Section 338 could allow future presidents of either party to impose tariffs or import restrictions on other trading partners without meaningful congressional oversight. The organization said its challenge concerns whether the administration complied with statutory requirements, rather than whether tariffs are sound economic policy.

Albrecht said the organization has challenged presidential tariff actions under several federal statutes, including the International Emergency Economic Powers Act (IEEPA), Section 122, Section 301 and now Section 338.

"We have challenged these tariffs under IEEPA, Section 122, Section 301 and now Section 338 for the same reason: the Constitution gives tariff power to Congress. The executive branch cannot keep moving the same policy from one statute to another and pretend the limits disappear," said Sara Albrecht, Chairman and CEO of the Liberty Justice Center.

The plaintiffs are asking the court to declare the tariffs unlawful, block their collection and order refunds with interest for importers who paid them. The Liberty Justice Center has also filed motions seeking a preliminary injunction to halt the tariffs and summary judgment in the case.