New Jersey cheese importer sues over Trump's 50% tariffs on Canadian goods
The case, brought with the Liberty Justice Center, argues the White House had no authority to use a 1930 trade law to tax about $20bn of Canadian imports.
A New Jersey food importer filed a lawsuit on Tuesday challenging President Donald Trump's 50% tariffs on about $20bn of Canadian goods, the BBC and the Las Vegas Sun reported.
Gellert Global Group, a third-generation family business that imports Canadian cheese, took its case to the US Court of International Trade. The Liberty Justice Center, the group that won the earlier challenge to Trump's "liberation day" tariffs, is representing the firm. According to the BBC and livemint.com, the suit asks the court to find the tariffs unlawful and to order refunds with interest. The BBC reported that the group has also asked for a preliminary injunction to block collection of the duties.
The tariffs were imposed in August under Section 338 of the Tariff Act of 1930. The Las Vegas Sun, carrying an Associated Press report, said that power has never been used in a trade dispute or tested in court. The lawsuit argues that later trade laws replaced Section 338. The BBC reported that the suit names Section 301 of the Trade Act of 1974. The suit also argues that even if Section 338 still applies, the White House has not shown a legal basis for the tariffs.
The BBC also reported that the suit says Section 338 requires a 30-day wait before levies take effect, but cheese was added to the list only a week before collection began.
“"No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required."”Sara Albrecht, Liberty Justice Center
The outlets differ on Albrecht's title. The BBC calls her chief executive, while the AP report calls her chair.
Co-chief executive Thomas Gellert told the BBC the tariffs "disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain." The BBC said the firm also faces Canadian retaliatory tariffs on American-made cheese it sells in Canada.
The case matters beyond one company. It is the Liberty Justice Center's fourth challenge to Trump's tariffs, the BBC reported. In February, the Supreme Court struck down tariffs imposed under an emergency powers law, and the AP report said the administration was forced to refund billions of dollars to importers. Livemint.com said other businesses that paid the Canada tariffs may be watching the case closely.
The dispute has grown since August. The BBC reported that Canadian Prime Minister Mark Carney matched the tariffs "dollar for dollar" last month. The AP report said Trump last month announced a ban on nearly $1bn of Canadian products, including alcoholic drinks, dairy products and motorcycles. Livemint.com said cheese, motorboats and aluminium goods were added to the list later, while road salt and cement were exempted.
Much is not yet known. The court has not ruled on the case or the injunction request. The White House had not responded to requests for comment, according to the BBC and the AP report, which said the Office of the US Trade Representative had not responded either.
