A legal challenge against President Trump’s tariffs on Canada has been initiated in the United States Court of International Trade. The lawsuit, filed by the non-profit Liberty Justice Center on behalf of U.S. food importer Gellert Global Group, argues that Trump’s utilization of a trade statute from the 1930s exceeds his presidential authority.

According to Liberty Justice Center CEO Sara Albrecht, the Section 338 statute, never before invoked, raises concerns about the legitimacy of the imposed tariffs on Canadian goods. Trump imposed a 50% levy on various Canadian products following failed trade negotiations in August, utilizing the same statute to prohibit the import of additional Canadian goods, including motorcycles, alcohol, and dairy products.

The lawsuit contends that the Canadian policies cited by the White House do not warrant the extensive tariffs imposed by the Trump administration. Allegedly, the tariffs are in response to provincial liquor bans, Canada’s dairy system, and U.S. vehicle quotas. The legal action seeks to challenge the constitutionality of the tariffs and seeks a refund.

Thomas Gellert, co-CEO of Gellert Global Group, expressed concerns over the disruption and uncertainty caused by the tariffs affecting American businesses. The company highlighted the intricate supply chain disruptions caused by the tariff dispute, impacting both American and Canadian businesses.

The lawsuit also raises broader implications beyond Canada, warning that unrestricted use of Section 338 could enable any future president to impose tariffs without substantial congressional oversight. The Liberty Justice Center previously contested Trump’s tariffs under the International Economic Emergency Powers Act, leading to a legal ruling against the administration’s actions.