Lawsuit targets Trump's 50pc tariffs on Canada over 'dormant statute' power

Food importer Gellert Global Group, backed by the Liberty Justice Center, files challenge to use of 1930 Tariff Act

By LineZotpaper

Published20 October 2026

Read Time2 min

A New Jersey food importer has sued President Donald Trump over his use of a Depression-era law to impose 50 per cent tariffs on Canadian goods, arguing the law has been effectively repealed and that no president should wield such unchecked authority.

Gellert Global Group filed the complaint in the U.S. Court of International Trade on Tuesday, challenging tariffs imposed in July on Canadian hockey sticks, wine, honey, wigs and other products. The Trump administration invoked Section 338 of the Tariff Act of 1930 for the first time to enact the levies, citing alleged trade discrimination by Ottawa.

The lawsuit argues that Section 338 is a 'relic of the retaliation-based tariff policy' that has been 'impliedly repealed' by subsequent legislation. It asks the court to declare the tariffs unlawful, block their enforcement, and order refunds of duties already paid, with interest.

Gellert Global is represented by the Liberty Justice Center, the same legal group that successfully challenged the Trump administration's broader 'reciprocal' tariffs. The Supreme Court struck those down in February, and the government is in the process of refunding an estimated $166 billion collected under them. The center is involved in two other lawsuits contesting Trump's tariff authorities.

'This case is not about the president. It is about the presidency,' Liberty Justice Center CEO Sara Albrecht said in a statement. '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.'

The White House did not immediately respond to a request for comment on the suit.

Analysis

Why This Matters

The outcome could define the limits of presidential power to impose tariffs using obscure historical statutes, with significant implications for US trade policy.
Importers and consumers in both the US and Canada face cost increases from the tariffs, affecting supply chains for goods from cheese to sporting equipment.
A win for the plaintiffs would further constrain the Trump administration's trade agenda, following the Supreme Court's rejection of the reciprocal tariff policy.

Background

The lawsuit is the third major legal challenge brought by the Liberty Justice Center against the Trump administration's trade policies. President Trump has pursued an aggressive tariff strategy, using various legislative tools to raise barriers against trading partners including Canada. Section 338 of the Tariff Act of 1930 had never before been used to impose a tariff until July, when the administration cited it to retaliate against Canadian trade practices. The Supreme Court's February ruling that struck down reciprocal tariffs marked a significant check on executive authority in trade matters.

Key Perspectives

Gellert Global Group and the Liberty Justice Center: They argue the use of the 1930 law exceeds presidential authority, as subsequent trade legislation has superseded it. Their focus is on the structural limits of executive power. The Trump Administration: The administration has defended the tariffs as necessary retaliation against unfair trade practices by Canada, asserting broad presidential discretion in trade matters under existing law. Importers and Free Trade Advocates: They view the case as an opportunity to restore predictability to trade relations, warning that creative use of dormant statutes destabilises business planning and raises costs.

What to Watch

The U.S. Court of International Trade's ruling on the motion for declaratory judgment and injunction.
Whether the Trump administration invokes additional dormant statutes for tariff actions in other disputes.
The resolution of the two other lawsuits brought by the Liberty Justice Center against Trump tariff policies.

Sources

Trump sued over 50% tariffs on Canada in latest trade challenge · US Top News and Analysis

Checked

12 claims in this story checked against 1 source: 11 supported.

Show each claim

SupportedThe lawsuit challenges Trump’s 50% tariffs on Canadian goods.US Top News and Analysis: “A new lawsuit filed Tuesday challenges President Donald Trump 's invocation of a Depression-era law to impose 50% tariffs on a range of Canadian goods .”
SupportedThe lawsuit concerns the use of a statute described as dormant.US Top News and Analysis: “No president should have the power to pull a dormant statute off the shelf”
SupportedGellert Global Group, represented by the Liberty Justice Center, filed a challenge to use of the Tariff Act of 1930.US Top News and Analysis: “The suit was filed by Gellert Global Group, a New Jersey-based food importer”
SupportedGellert Global filed its complaint in the U.S. Court of International Trade on Tuesday.US Top News and Analysis: “A new lawsuit filed Tuesday challenges President Donald Trump 's invocation”
SupportedTrump used Section 338 in July to impose tariffs on Canadian hockey sticks, wine, honey, wigs and other products, citing alleged trade discrimination by Ottawa.US Top News and Analysis: “Trump in July used Section 338 of the Tariff Act of 1930 to slap those steep tariffs on Canadian hockey sticks, wine, honey, wigs, and other products in response to alleged trade discrimination by Ottawa.”
SupportedIt was the first time Section 338 had been used to impose a tariff.US Top News and Analysis: “It was the first time the 96-year-old law had ever been used to impose a tariff.”
SupportedThe lawsuit argues that Section 338 is a relic of retaliation-based tariff policy that has been impliedly repealed by later legislation.US Top News and Analysis: “"Section 338 is a relic of the retaliation-based tariff policy" that has been "impliedly repealed" by subsequent legislation, the civil complaint filed in the U.S. Court of International Trade says.”
SupportedThe lawsuit asks the court to declare the tariffs unlawful, block enforcement and order refunds with interest for duties already paid.US Top News and Analysis: “The complaint asks the court to declare the tariffs unlawful, block their enforcement, and order the Trump administration to issue refunds for duties already paid, with interest.”
SupportedThe Liberty Justice Center successfully challenged Trump’s reciprocal tariffs, which the Supreme Court struck down in February.US Top News and Analysis: “Gellert Global is represented by the Liberty Justice Center, the same legal group that dealt a major blow to Trump 's trade agenda by successfully contesting his "reciprocal" tariffs. The Supreme Court struck those tariffs down in February.”
SupportedThe administration is refunding an estimated $166 billion collected from importers under the reciprocal duties.US Top News and Analysis: “The administration is in the process of refunding the estimated $166 billion that the federal government collected from importers through the reciprocal duties.”
Partly supportedThe Liberty Justice Center is involved in two other lawsuits contesting Trump’s tariff authorities.US Top News and Analysis: “The Liberty Justice Center is currently engaged in two other lawsuits against what it says is Trump 's misuse of laws to impose sweeping tariffs.”
SupportedThe White House did not immediately respond to a request for comment on the suit.US Top News and Analysis: “The White House did not immediately respond to CNBC 's request for comment on the suit.”