The lawsuit, initiated by Gellert Global Group, a New Jersey food importer affected by the tariffs, argues that Trump's use of Section 338 of the Tariff Act of 1930 is unlawful and seeks to block the tariffs and obtain refunds for duties already paid.
This legal action marks the first challenge to the tariffs imposed in July, which targeted products like hockey sticks, wine, and honey, and is based on claims of trade discrimination by Canada. The Liberty Justice Center, representing Gellert Global, previously succeeded in contesting Trump's 'reciprocal' tariffs, which were struck down by the Supreme Court in February.
The outcome of this lawsuit could set a precedent regarding the extent of presidential authority in imposing tariffs without congressional approval, as emphasized by the group's CEO, Sara Albrecht, who stated that the case is about limiting presidential power rather than targeting Trump personally.
The White House has not yet commented on the lawsuit, which could further complicate the administration's trade policies and impact relations with Canada