A legal challenge has been initiated against the tariffs imposed by U.S. President Donald Trump on Canada. The lawsuit was filed in the United States Court of International Trade by the non-profit organization Liberty Justice Center on behalf of the U.S. food importer Gellert Global Group. The lawsuit argues that President Trump’s use of Section 338, a trade statute dating back to the 1930s, exceeds his presidential authority.
According to Liberty Justice Center CEO Sara Albrecht, the decision to invoke Section 338, which had never been utilized before, prompted the legal action as it was deemed inappropriate. Trump imposed a 50% tariff on various Canadian goods using this statute after trade negotiations faltered in August. Subsequently, the same statute was used to prohibit the import of additional Canadian products, including motorcycles, alcohol, and dairy items.
The lawsuit challenges the rationale behind the tariffs, asserting that Canadian policies do not warrant the sweeping tariffs imposed by the Trump administration. The White House contends that Section 338 grants the president the power to impose tariffs when a country places U.S. exporters at a disadvantage compared to exporters from other nations, despite the statute’s historical non-utilization for such purposes.
The legal action highlights that some of the retaliatory measures taken by Canada, such as auto quotas and liquor bans, were responses to Trump’s initial tariff actions. It also emphasizes that Canada’s dairy supply management system was established under the Canada-U.S.-Mexico Agreement, negotiated during Trump’s first term.
The lawsuit emphasizes the adverse impact of the tariffs on both importers and consumers in the U.S. and Canada, questioning the constitutionality of the tariffs. The legal challenge seeks to declare the tariffs unlawful and demands a refund. The Liberty Justice Center has previously been involved in legal disputes against Trump’s tariff policies and aims to hold the administration accountable for its trade actions.