US food importer challenges 50% tariffs on Canadian goods
The Liberty Justice Center filed a lawsuit on 20 October challenging 50% US tariffs on Canadian goods. The case, brought in the US Court of International Trade on behalf of food business Gellert Global Group, asks the court to find the levies unlawful and order refunds with interest for affected importers. BBC
The lawsuit argues the White House exceeded its authority in imposing the tariffs and caused immediate harm to American businesses. The duties at issue were imposed after US-Canada trade talks broke down in August, when the White House applied a 50% levy to about $20bn worth of Canadian goods.
The White House has said each proclamation under the policy imposes a 50% tariff on a different set of Canadian imports, covering products ranging from wine to hockey sticks. White House
Gellert Global Group is a third-generation family business based in New Jersey. It is paying the 50% tariff on cheese exported from Canada and faces retaliatory tariffs from Canada on American-made cheese it sells in Canada.
At the center of the case is the administration's use of Section 338 of the Tariff Act of 1930 to impose tariffs on Canadian goods including wine, dairy products and hockey sticks. A White House presidential action states that Section 338 empowers the president to impose duties on imports. White House
The lawsuit argues that provision has been superseded by Section 301 of the Trade Act of 1974. It challenges the White House's reliance on retaliatory tariffs imposed by Canada to justify its own duties under Section 338.
The suit argues Section 338 requires a 30-day waiting period before levies can be imposed, while the tariff on products including cheese was added to the list just a week before collection began. The Center filed a motion for a preliminary injunction to block collection of the tariffs while the case proceeds.
This is the fourth case brought by the Liberty Justice Center against tariffs imposed under President Trump, including a successful challenge to tariffs imposed under the International Emergency Economic Powers Act that were struck down in February. Canadian Prime Minister Mark Carney matched the Section 338 US tariffs dollar for dollar after Trump imposed them over what he described as unequal treatment of US cars, dairy and alcohol. The White House has described the additional duties as intended to offset Canadian discrimination against US commerce with respect to alcoholic beverages.
