New Jersey food importer Gellert Global Group sued the US government on October 20, challenging 50% tariffs on a range of Canadian goods imposed under Section 338 of the Tariff Act of 1930. The company is asking the US Court of International Trade to rule the duties unlawful, block their enforcement and order refunds, with interest, for importers that have paid them.
The case puts the legal basis for the tariffs back in focus for businesses and markets. A ruling for Gellert could open the door to refunds for affected importers and constrain the administration’s use of a long-dormant statute to impose broad tariffs.
Section 338 invoked for the first time
In July, the Trump administration cited Section 338 to impose 50% tariffs on hockey sticks, wine, honey, wigs and other Canadian goods, alleging that Canada had discriminated against US trade. The move marked the first time in the 96 years since the law was enacted that it had been used to collect tariffs.
Gellert says its imported cheese products are also covered. In its complaint, the company argues that Section 338 is a holdover provision for retaliatory tariffs and has effectively been superseded by laws enacted later. It says the executive branch therefore cannot rely on the provision to impose the current duties.
Importer seeks refunds and interest
The complaint asks the court to declare the tariffs unlawful, stop the government from enforcing them and require refunds, with interest, for importers that have already paid. It does not specify how much Gellert itself has paid. The refund claim nevertheless puts the company’s import costs and cash flow directly at stake.
For food importers, an additional 50% tariff changes the cost of bringing Canadian goods into the US. Companies may have to reassess suppliers, pricing and inventory, although the effect will depend on the outcome of the case and any changes the government makes to its tariff policy.
Liberty Justice Center challenges tariff authority again
Gellert is represented by the Liberty Justice Center, which previously won a challenge to the Trump administration’s reciprocal tariffs. The US Supreme Court overturned those measures in February this year. The government is now handling refunds and is expected to return about $166 billion collected through the reciprocal tariffs.
Liberty Justice Center CEO Sara Albrecht said in a statement that the case concerns the authority of the presidency, not the president personally. She argued that a president should not be able to revive a long-dormant law and use it to impose tariffs or import bans on a broad range of goods without limits set by Congress.
The organization has also filed two other lawsuits challenging the administration’s use of different laws to impose broad tariffs. The White House had not commented on Gellert’s case at the time of publication. The proceedings will bear on the enforcement of tariffs on the affected Canadian goods, importers’ refund claims and the executive branch’s ability to use older laws to change trade policy.