A legal challenge has been initiated against the tariffs imposed by U.S. President Donald Trump on Canada. The lawsuit, filed at the United States Court of International Trade by the non-profit Liberty Justice Center on behalf of U.S. food importer Gellert Global Group, contends that Trump’s utilization of a trade statute from the 1930s surpasses his presidential authority.
The lawsuit argues that the application of Section 338, a statute never previously invoked, is unjust. Trump imposed a 50% levy on various Canadian goods using Section 338 following failed trade negotiations in August. Subsequently, the import of additional Canadian products, including motorcycles, alcohol, and dairy items, was prohibited using the same statute.
According to the lawsuit, the Canadian policies cited as justifications for the tariffs by the White House do not validate the extensive tariffs imposed by the Trump administration. The lawsuit highlights that some Canadian measures, such as auto quotas and liquor bans, were responses to Trump’s initial tariff actions. Additionally, it notes that Canada’s dairy supply management system aligns with the Canada-U.S.-Mexico Agreement, negotiated during Trump’s first term.
The legal action underscores the adverse impact of the tariffs on both importers and consumers in the two nations. While acknowledging Trump’s affinity for tariffs, Liberty Justice Center CEO Sara Albrecht criticizes the implementation of tariffs in this instance as unconstitutional and harmful to the relationship between the U.S. and Canada.
In response, a Trump administration official defended the president’s tariff measures, emphasizing their commitment to supporting American workers, farmers, and businesses. The ongoing trade actions by the administration are causing repercussions for American enterprises.
The lawsuit also raises concerns beyond the Canada-U.S. trade dispute, warning that unchecked tariffs under Section 338 could grant any future president broad authority to impose tariffs without significant congressional oversight. The legal filing seeks a judicial declaration of the tariffs’ illegality and demands a refund.
Notably, the Liberty Justice Center has a history of challenging Trump’s tariff actions, including previous involvement in legal battles against tariffs imposed on Canada, Mexico, and China. The lawsuit underscores the constitutional limitations on presidential powers regarding taxes and tariffs, as highlighted by a previous legal ruling on Trump’s use of the International Economic Emergency Powers Act of 1977.
