New Lawsuit Challenges Trump’s 50% Tariffs on Canadian Imports

Published Oct. 21, 2026

Key Points

• Gellert Global Group Corp. filed a lawsuit on October 20, 2026, challenging 50% tariffs on certain Canadian imports under Section 338 of the Tariff Act of 1930.
• The food importer argues that Section 338 doesn’t authorize the tariffs and that Section 301 of the Trade Act of 1974 governs the response to the Canadian trade practices at issue.
• The complaint argues that duties on products added on September 8 began too early, just seven days later instead of after the required 30-day waiting period.
• Gellert says the tariffs are also affecting U.S. dairy suppliers, including New York farms that supply milk to its Canadian brie producer.
• The company asks the court to declare the tariffs unlawful, stop their collection, and order refunds with interest.

A​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ U.S. food importer and distributor, Gellert Global Group Corp., is challenging the Trump administration’s use of Section 338 of the Tariff Act of 1930 to impose 50% tariffs on certain Canadian goods, including cheese. In a complaint filed October 20, 2026, with the U.S. Court of International Trade (CIT), the food importer argues that the tariffs exceed the administration’s statutory authority and violate the law’s 30-day waiting period for newly listed products. Gellert estimates the duties will cost it about $40 million annually on Canadian cheese imports.

Why Gellert Is Challenging the Tariffs

Gellert imports more than 15 product lines of Canadian cheese, including brie, camembert, goat’s milk cheese, sheep’s milk cheese, and mascarpone. The complaint states that the company imported approximately $71 million worth of Canadian cheese in 2025.

The company challenges the administration’s use of Section 338, which authorizes duties in response to specified forms of foreign discrimination against U.S. commerce. According to the complaint, Section 301 of the Trade Act of 1974 supersedes or limits Section 338 in these circumstances. It also argues that the administration has not established the statutory basis for the tariffs or adequately connected the 50% duty rate to a measured burden or disadvantage.

Complaint Challenges the 30-Day Waiting Period

The complaint alleges that the administration failed to comply with Section 338’s 30-day waiting period for newly listed products.

On September 8, 2026, Proclamations 11064 and 11065 added products that included cheeses imported by Gellert. The proclamations directed that the tariffs take effect on September 15, only seven days later.

Section 338, as the complaint argues, doesn’t authorize the collection of duties on newly listed products until 30 days after the relevant proclamation. Gellert seeks refunds with interest for duties collected on entries made before October 8, 2026, under the challenged provisions.

Effects on Cross-Border Supply Chains

The 50% tariffs have increased costs for U.S. importers of Canadian goods, including cheese that previously entered duty-free under the USMCA. Gellert says it is absorbing the costs through the end of 2026, but the added expense is straining working capital, reducing profit margins, and delaying hiring and investment. If the tariffs continue, the company may raise prices, lose customers and product placements, and face supply disruptions as Canadian producers scale back or close.

Relief Sought

Gellert asks the U.S. Court of International Trade to:

• Declare that Section 338 does not authorize the challenged tariffs or that Section 301 controls the administration’s authority in the circumstances at issue.
• Declare the tariffs unconstitutional if Section 338 is interpreted to authorize them.
• Find that collecting duties before the required 30-day period elapsed violated Section 338.
• Stop enforcement and collection of the challenged duties.
• Order refunds with interest for duties unlawfully collected.

The case now moves to the U.S. CIT, where Gellert is seeking to have the tariffs declared unlawful, stop their collection, and recover duties paid, including those collected before October 8 on newly listed products.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.