The Liberty Justice Center has filed its fourth major lawsuit challenging President Donald Trump’s tariffs, targeting 50% duties imposed on select Canadian imports under Section 338 of the Tariff Act of 1930, The New York Times reports.
The rarely used provision allows tariffs against countries accused of unfairly discriminating against American goods. Trump became the first president to invoke the authority in September, applying the duties to products including Canadian cheese, alcoholic beverages, dairy products, hockey sticks and paper goods. The tariffs prompted retaliatory measures from Canada, raising concerns about economic damage on both sides of the border.
The lawsuit, filed in the U.S. Court of International Trade on behalf of New Jersey-based food importer and distributor Gellert Global Group, argues that Trump exceeded his legal authority and failed to follow required procedures. The company estimates the duties could cost it approximately $40 million annually in taxes on Canadian cheese imports.
The center also challenges Section 338’s constitutionality, arguing that Congress did not intend the outdated provision to let presidents bypass the safeguards built into Section 301 of the Trade Act of 1974, which requires a formal investigation into alleged unfair foreign trade practices before tariffs can be imposed.
The case adds to mounting legal challenges against Trump’s trade agenda, which aims to boost domestic manufacturing and generate federal revenue through tariffs. The Liberty Justice Center and other challengers have already won court battles against earlier rounds of duties, including a Supreme Court ruling in February. Those defeats have forced the administration to repay billions of dollars in improperly collected tariffs, plus interest.
The new case could further restrict the president’s ability to impose trade penalties or, if successful for the administration, reinforce his authority to use the decades-old law against Canada and potentially other trading partners.
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