A legal challenge against the tariffs imposed by U.S. President Donald Trump on Canada has been initiated in the United States Court of International Trade. Filed by the non-profit organization Liberty Justice Center on behalf of U.S. food importer Gellert Global Group, the lawsuit contends that Trump’s utilization of a trade statute from the 1930s exceeds his presidential authority.
The lawsuit highlights the unprecedented use of Section 338 by Trump to impose a 50% tariff on various Canadian goods following failed trade negotiations in August. Subsequently, other Canadian products, including motorcycles, alcohol, and dairy items, were also banned under the same statute in the subsequent month.
According to the White House, Section 338 allows the president to implement tariffs when a country puts U.S. exporters at a disadvantage compared to exporters from other nations, despite the statute never being previously utilized for such purposes. The U.S. government links the recent tariffs to provincial restrictions on U.S. liquor, Canada’s dairy system, and quotas on specific U.S. vehicles.
The lawsuit argues that the Canadian policies cited do not warrant the extensive tariffs imposed by the Trump administration. It emphasizes that certain retaliatory measures by Canada were responses to Trump’s initial tariff actions. Moreover, it mentions that Canada’s dairy management system was established under the Canada-U.S.-Mexico Agreement, negotiated during Trump’s first term.
The lawsuit underscores the negative impacts of the tariffs on both importers and consumers in both countries, stating that while tariffs are a signature policy of Trump, their implementation in this case is deemed unconstitutional. The legal action seeks to declare the tariffs unlawful and demand a refund.
The Liberty Justice Center, known for its prior legal challenges against Trump’s tariff policies, has been actively involved in advocating against the misuse of presidential powers in trade matters.