Trump Sued Over 50% Tariffs on Canadian Goods
Gellert Global Group, a New Jersey food importer, sued Tuesday to block Trump's 50% tariffs on certain Canadian goods.
- 50% tariffs cover goods including cheese, wine, honey and hockey sticks.
- $40 million a year in duties could hit Gellert's Canadian cheese imports, the company says.
- Trump used Section 338 of the Tariff Act of 1930 for the tariffs.
- No president had used that provision to impose a tariff before.
Why it matters: The case asks whether a president can use a long-unused statute to set tariffs. The suit seeks to void the duties and win refunds with interest.
- The Liberty Justice Center, which won the reciprocal tariff case, represents Gellert.
- $166 billion in reciprocal tariffs is being refunded after a February Supreme Court ruling.
How 6 sources split on this story
Where they split: Outlets differ on timing: CNBC says Trump invoked Section 338 in July, while The New York Times says September.
Center coverage, 4 sources: The center treats it as a new legal challenge to an untested tariff law, alongside Trump's jobs-driven reversal on Bombardier.
Left coverage, 2 sources: The left frames the suit as another test of Trump's power to wage a trade war without Congress, before a court that has repeatedly ruled against him.
What’s next: The Court of International Trade will rule on the duties and on Section 338's constitutionality.
- Trump dropped his Bombardier threat after Kansas lawmakers, including Sen. Roger Marshall, raised its 1,500 Wichita jobs.
- 4% gain in Bombardier shares followed Trump's comments Tuesday.
- Will the court find Section 338 was effectively repealed by later trade laws, as the suit argues?
- How will the administration respond? The White House did not comment on the suit.
- Does the Bombardier reversal signal any broader easing in the U.S.-Canada trade dispute?
