# Gellert Global Group Challenges Trump's 50% Canadian Tariff Policy Legal action targets the use of a 1930 trade law against Canadian imports. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-10-20 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/483db209-fc26-4cd6-8edf-a4cd01f5e9e8 ## Lawsuit Challenges Tariff Basis Gellert Global Group filed a lawsuit Tuesday contesting the administration's use of Section 338 of the Tariff Act of 1930. The company argues this 96-year-old law is a relic that was impliedly repealed by later legislation. They seek to declare the 50% tariffs on Canadian goods unlawful and demand full refunds. ## Scope of Targeted Imports The tariffs, which took effect August 22, impact a diverse range of Canadian products including hockey sticks, wine, honey, and wigs. Gellert Global, a major food importer with $1.7 billion in annual revenue, specifically highlights the financial burden on its cheese imports, which now face an estimated $40 million annual duty. ## Legal Precedent and Representation The Liberty Justice Center represents the importer in this case. This legal group previously secured a Supreme Court victory in February against the administration's reciprocal tariffs. That ruling forced the federal government to begin the process of refunding approximately $166 billion in collected duties to affected importers across the country. ## Disputing Trade Discrimination Claims The administration justified these tariffs by citing alleged unfair treatment in Canadian motor vehicle, alcohol, and dairy sectors. However, the lawsuit contends that Canada's actions are merely retaliatory responses to previous U.S. tariffs. The complaint argues that retaliation does not constitute the trade discrimination required by the 1930 statute. ## USMCA Dairy Quota Conflict The dispute also involves dairy quota terms negotiated under the USMCA trade agreement. The lawsuit claims these terms provide American cheese with superior access to the Canadian market compared to other nations. Despite these existing terms, the administration has signaled it will not renew the trade pact for another 16-year term. ## Operational Impact on Importers Gellert Global imported $71 million worth of Canadian cheese in 2025. While the company plans to absorb the 50% duty costs through the end of the year, they describe the situation as unsustainable. Long-term consequences include forced price increases, reduced customer loyalty, and potential supply chain interruptions for their food products. ## Constitutional Authority Concerns CEO Sara Albrecht stated that the lawsuit addresses the limits of presidential power rather than the president himself. The core argument is that no executive should possess the authority to revive dormant statutes to impose sweeping tariffs without explicit Congressional oversight. This case aims to establish a clear legal boundary for trade. ## Broader Trade Policy Implications This filing represents one of three active lawsuits the Liberty Justice Center is currently pursuing against the administration's tariff policies. As trade talks between Washington and Ottawa collapsed in August, the legal outcome will likely determine the future viability of using century-old laws to bypass modern legislative trade requirements and constraints. ## Sources covering this story - https://www.cnbc.com/2026/10/20/trump-tariffs-canada-section-338-lawsuit.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._