A legal challenge has been initiated against the tariffs imposed by U.S. President Donald Trump on Canada. The lawsuit was filed in the United States Court of International Trade by the non-profit organization Liberty Justice Center, representing U.S. food importer Gellert Global Group. The lawsuit argues that President Trump’s utilization of Section 338, a trade statute from the 1930s that had never been previously enforced, surpasses his authority as president.
President Trump invoked Section 338 to impose a 50% tariff on various Canadian goods following failed trade negotiations in August. Subsequently, the same statute was utilized to prohibit the import of additional Canadian products such as motorcycles, alcohol, and dairy items.
The lawsuit contends that Canadian policies do not warrant the extensive tariffs imposed by the Trump administration. It highlights that the latest tariffs were imposed in response to provincial restrictions on U.S. liquor, Canada’s dairy management system, and quotas on specific U.S. vehicles.
The legal action seeks to challenge the lawfulness of the tariffs and request a refund. The Liberty Justice Center, previously involved in legal disputes against Trump’s tariffs, asserts that the imposition of tariffs under Section 338 could potentially allow any future president to levy tariffs and trade restrictions without significant congressional oversight.