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Legal battle escalates: Trump faces lawsuit over new Canadian tariffs

The Liberty Justice Center sues the U.S. Treasury over 50% tariffs on Canadian goods, challenging the President’s use of Section 338 and demanding refunds for affected businesses.

Source: bbc.co.uk1 min read
Legal battle escalates: Trump faces lawsuit over new Canadian tariffs
Image via bbc.co.uk

In brief

The Liberty Justice Center has taken the White House to court over the 50 % tariff on $20 bn of Canadian imports, arguing the move oversteps executive authority. It claims Section 338 has been superseded by a 1974 statute and the 30‑day waiting period was ignored. A judgment in its favor could order refunds with interest to U.S. importers, tightening limits on administration tariff power. The case follows a successful earlier suit that struck down President Trump’s use of the International Emergency Economic Powers Act.

U.S. President Donald Trump faces a fresh legal challenge following the Liberty Justice Center’s filing over the administration’s 50 % tariff on Canadian goods.

The U.S. Treasury had levied the tariffs on roughly $20 bn of imports after trade talks collapsed in August, a move that the trade group says oversteps the executive’s authority.

The lawsuit argues that Section 338 of the 1930 Tariff Act, used as justification, has been superseded by a 1974 statute and that a 30‑day waiting period was ignored.

If the case is upheld, affected U.S. importers could receive refunds with interest, and it would set a precedent limiting the executive branch’s tariff power.

The Liberty Justice Center has already won a precedent‑setting ruling against Trump’s use of the International Emergency Economic Powers Act and now seeks a preliminary injunction against the Canadian tariffs.

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