A legal challenge against the tariffs imposed by the U.S. President on Canada has been initiated in the United States Court of International Trade. The lawsuit, filed by the non-profit organization Liberty Justice Center on behalf of Gellert Global Group, a U.S. food importer, contends that President Trump’s utilization of Section 338, an old trade statute from 1930, exceeds his authority. According to Liberty Justice Center CEO Sara Albrecht, the decision to invoke Section 338, which had never been utilized before, prompted the lawsuit as it was deemed unjust.
President Trump utilized Section 338 to impose a 50% tariff on a variety of Canadian products following failed trade negotiations in August. Subsequently, the same statute was employed to restrict the import of additional Canadian goods, including motorcycles, alcohol, and dairy products. The lawsuit argues that the Canadian policies cited by the White House do not justify the extensive tariffs imposed by the Trump administration.
The lawsuit asserts that the tariffs have far-reaching implications for both importers and consumers in both countries. Although acknowledging tariffs as one of President Trump’s key policies, Albrecht maintains that the implementation in this instance is unconstitutional. The lawsuit seeks to challenge the legality of the tariffs and demands a refund. The Liberty Justice Center has a history of legal challenges against the Trump administration’s tariff policies and has previously contested the use of the International Economic Emergency Powers Act of 1977 in imposing tariffs on various countries.
The lawsuit underscores concerns beyond the immediate trade dispute with Canada, warning of the potential misuse of Section 338 by any future president to impose tariffs without adequate congressional oversight. The litigation aims to address the disruption caused by the tariffs and restore a fair trade environment for American workers and businesses.