VideoU.S.–Canada
American cheese importer sues Trump administration over 50% Canadian tariffs
A New Jersey importer's challenge to Section 338 could decide whether Washington keeps its only tool aimed solely at Canada, with about $40 million a year at stake.
Summary
On Tuesday, Gellert Global Group, a cheese importer based in New Jersey, sued the Trump administration at the US Court of International Trade over the 50% tariffs on Canadian goods. The case targets Section 338 of the Smoot-Hawley Tariff Act, a 1930 law that the video says was never used until this summer and that Canada is the only country it has been aimed at so far.
The video traces the path from July 20, when Washington signed proclamations setting the tariff, to August 22, when it took effect on roughly $20 billion in Canadian goods. It follows Mark Carney walking away from an interim deal that Trump had announced. Canada answered with dollar-for-dollar countertariffs on about $27 billion in American goods from September 8. From a Canadian perspective, the video presents this as a measured response that leaves a clear record: America tariffed first.
The lawsuit argues that Canadian retaliation is not discrimination, the condition the law requires. It also notes that Canada's dairy quota terms were negotiated by the United States inside USMCA. The video argues the outcome could matter beyond Canada, since a ruling could shape future tariff fights with Mexico, Europe and Japan.
Key points
- Gellert Global Group, a New Jersey cheese importer, filed suit at the US Court of International Trade challenging Section 338 tariffs.
- A 50% tariff applies to roughly $20B of Canadian goods, in force since August 22.
- Gellert imported about $71M in Canadian cheese in 2025 and estimates a cost of about $40M per year.
- Over $520,000 in duties were paid between September 16 and October 11 alone.
- Washington cited three "discriminatory" measures: dairy supply management, auto countertariffs and provincial liquor bans.
- Canada's dollar-for-dollar countertariffs cover about $27B in US goods, in force since September 8.
Questions answered
What is Section 338 and why is it being challenged?
Section 338 is a provision of the 1930 Smoot-Hawley Tariff Act that allows a president to retaliate against countries that discriminate against American commerce. The video says it went unused until this summer and that Canada is the only target so far. The lawsuit argues it tries to take tariff power from Congress.
How much is the tariff costing Gellert?
The video says Gellert imported about $71 million in Canadian cheese in 2025 and estimates the tariff cost at about $40 million a year. Between September 16 and October 11, it paid over $520,000 in duties. The company's lawyers are also seeking class action certification for other American firms hit by the tariffs.
Why does the lawsuit say Canada's measures are not discriminatory?
The lawsuit argues that two cited measures, Canada's auto countertariffs and provincial liquor decisions, respond to US tariffs, and that retaliation is not discrimination. On dairy, it notes the US itself negotiated Canada's dairy quota terms inside USMCA, which give American cheese better access than most of the world.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work