In brief
After Washington imposed steep duties on $20 bn of Canadian imports, the Liberty Justice Center has launched a new challenge. The case argues the administration exceeded its authority under Section 338 of the Tariff Act and demands refunds and interest for affected importers. Key disputes involve dairy, wine and cheese producers hurt by sudden hikes. The clash escalates a trade war that saw Canada mirror U.S. duties. The outcome could reshape executive power over tariffs.
US President Donald Trump Faces New Tariff Challenge from Canada
The former president has become the target of a fresh lawsuit after Washington imposed a 50 % tariff on the 20 bn worth of goods it last month seized from Canadian sellers.
The suit, filed by the Liberty Justice Center on behalf of Gellert Global Group—a family‑owned cheese‑maker that exported Canadian dairy—alleges that the executive branch moved beyond its statutory limits under Section 338 of the Tariff Act of 1930.
In August the trade dispute erupted when Canada responded to U.S. duties on cars, dairy and alcohol by demanding a “dollar‑for‑dollar” retaliation. The unapproved duty on cheeses and other products had been added to the duty list just a week before collection began.
The legal brief argues that the president overstepped and that the debts it created “immediate harm to American businesses.” It also requests a refund of the levies with interest for affected importers.
“No president should be able to pull a dormant statute from the shelf and impose sweeping tariffs or import bans without congressional limits,” said Sara Albrecht, chief executive of the Liberty Justice Center.
This is the fourth suit that the group has brought against Trump‑era tariffs, including a successful challenge under the International Emergency Economic Powers Act earlier this year. If the courts rule in favour of the plaintiffs, the U.S. might be forced to answer to Congress over future trade powers.
The case is being heard in the U.S. Court of International Trade, a specialised chamber that adjudicates trade‑related disputes. For now, Washington has not issued a response and the litigation marks a new chess move in an escalating trade exchange between the two North American neighbours.
