# U.S. Importer Sues Trump Over 50% Tariffs on Canadian Goods By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/36282 Published: 2026-10-21T03:24:29.000Z Updated: 2026-10-21T03:24:29.000Z Section: Regulation > Gellert Global Group Corp. seeks to stop collection and recover duties paid on Canadian cheese. Its lawsuit tests the administration’s use of a 1930 trade law. U.S. food importer Gellert Global Group Corp. sued President Donald Trump on Oct. 20 over 50% duties on certain Canadian goods, asking a trade court to stop collecting them and order refunds. The administration used Section 338 of the Tariff Act of 1930 after asserting that Canadian measures disadvantaged U.S. alcohol, dairy and motor vehicle exports. Trump signed three tariff proclamations on July 20. The initial duties began Aug. 22 at 12:01 a.m. ET (04:01 UTC), after an Aug. 19 start was postponed. The affected Canadian imports were valued at nearly $20 billion when the duties were announced. Gellert’s Canadian cheese products were added to the tariff lists later, on Sept. 8. Collection on those products began Sept. 15 at 12:01 a.m. ET (04:01 UTC), on a separate schedule from the initial duties. Gellert argues that the seven-day interval failed to meet Section 338’s 30-day waiting requirement for newly listed goods. The company also contends that later trade legislation limits the use of Section 338. It argues that the administration set the 50% rate without measuring the disadvantage the duties were meant to address. Both arguments remain before the U.S. Court of International Trade. Gellert says it paid at least $520,538 in duties on 22 Canadian cheese entries from Sept. 16 through Oct. 11. It imported about $71 million in Canadian cheese in 2025 and estimates that the new duties would cost it $40 million annually. The annual figure is the company’s projection. Canada began counter-tariffs of 15%, 25% or 50% on selected U.S. goods Sept. 8. The administration maintains that Canada’s treatment of American exports supports the U.S. duties, while Gellert disputes that legal basis and the way the rate was set. The Supreme Court ruled Feb. 20 that the International Emergency Economic Powers Act (IEEPA) does not authorize presidential tariffs. That decision concerned a different law and did not decide the Section 338 question. A [separate challenge to Section 301 tariffs]() is also before the trade court. Gellert has asked the court to block further collection while its case proceeds and to return duties it has paid. The lawsuit remains pending. ## Links in this article - [separate challenge to Section 301 tariffs](https://www.tokenpost.com/news/regulation/25840)