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Trump Faces New Lawsuit Over Canadian Tariffs

Trump faces new lawsuit over 50% Canadian tariffs, as Liberty Justice Center challenges the move and seeks refunds, citing unlawful use of Section 338.

Source: bbc.co.uk1 min read
Trump Faces New Lawsuit Over Canadian Tariffs
Image via bbc.co.uk

In brief

The United States Supreme Court of International Trade is now the arena for a fresh legal battle as the Liberty Justice Center brings a suit against President Donald Trump’s 50% tariff on Canadian goods. The group representing New Jersey food firm Gellert Global Group argues the executive action violates Section 338 of the Tariff Act and caused immediate harm to American businesses. Trump’s tariffs followed a breakdown in U.S.-Canada trade talks and were initially imposed on about $20 billion of Canadian imports. The lawsuit seeks a declaration that the tariffs are unlawful, refund payments with interest and could include a preliminary injunction to stop collection.

President Donald Trump is under fire again as the Liberty Justice Center files a new suit against his 50% tariff on Canadian goods, arguing that the move is unlawful and has harmed American businesses.

The White House’s tariffs were introduced after trade negotiations with Canada failed in August, affecting roughly $20 billion of imports, including wine, dairy and hockey sticks.

The lawsuit seeks a ruling that the tariffs violate Section 338 of the 1930 Tariff Act and that the White House overstepped its authority. The group also requests refund payments with interest for importers and a preliminary injunction to block further collection.

The case centers on whether the executive can use a dormant statute to impose sweeping duties whenever a trade dispute arises, with the Center pointing to a 30‑day waiting period requirement that was not met.

It represents the fourth challenge the group has mounted against Trump’s tariffs, following a successful lawsuit that struck down tariffs under the International Emergency Economic Powers Act. The Center’s chief, Sara Albrecht, says the aim is to keep the power of imposing tariffs confined to Congress and not allow the presidency to override legal limits.

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