A 50% tariff on certain Canadian goods is now at the center of a new test of presidential power: a New Jersey food importer says the White House used a 1930 law beyond what Congress allowed and asks a trade court to stop collecting the duty.
Gellert Global Group filed suit on October 20, 2026, in the U.S. Court of International Trade in New York. The third-generation family business imports Canadian cheeses. Its complaint asks the court to block the tariffs, declare them unlawful and order refunds with interest for affected importers. The levy reaches about $20 billion in Canadian goods—not every Canadian import.
The dispute turns on Section 338 of the Tariff Act of 1930, a rarely used provision the administration invoked to impose duties of up to 50%. The White House says the measures respond to Canadian discrimination against U.S. auto, alcohol and dairy exports. Gellert argues that newer trade laws impose safeguards the administration cannot bypass, and that the Canadian policies cited do not justify the duties.
One specific challenge concerns timing. The complaint says the government added cheeses Gellert imports to the tariff list on September 8 and began collecting duties seven days later, despite Section 338’s 30-day waiting period for newly covered products. The company says Canadian cheese is also being taxed over disputes involving cars and liquor.
The cost can travel across the border in both directions. One supplier buys milk from upstate New York farmers, makes brie in Canada and ships it back to U.S. customers. Canada has also imposed retaliatory tariffs on some U.S. goods. The case therefore puts a real supply chain—and the reach of presidential trade powers—before the court.
The administration says it will defend the tariffs. Gellert has asked for a preliminary injunction and summary judgment, but no ruling has been issued. The duties remain in force while the case proceeds; any refunds or broader limits on the tariffs would require further court action.