Trump Accused of Unlawfully Invoking 1930s Law for Canada Tariffs
Summary
A New Jersey company, Gellert Global Group, filed a lawsuit against President Donald Trump, claiming he wrongly used an old 1930 law to impose high tariffs on Canadian cheese. The company says these tariffs cost it over $520,000 and could reach $40 million yearly, arguing that newer trade laws limit the president’s power to do this.Key Facts
- Gellert Global Group imports Canadian cheese and has paid over $520,000 in tariffs on cheese shipments since September 2026.
- The company estimates the tariffs could cost it $40 million each year if they continue.
- The lawsuit challenges President Trump’s use of Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian products.
- Gellert says newer trade laws, like Section 301 of the Trade Act of 1974, limit the president’s authority to impose these tariffs.
- The lawsuit claims the administration did not follow the 30-day waiting period required by Section 338 before starting to collect tariffs.
- Section 338 has not been used to impose tariffs in the 96 years before President Trump invoked it in 2026.
- Canada has responded by putting tariffs on about $30 billion worth of U.S. goods, with rates of 15 to 50 percent.
- The White House plans to defend the tariffs, saying the law is appropriate to respond to Canadian trade discrimination.
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