Gellert Global Group, a food importing company, has filed suit in the U.S. Court of International Trade challenging President Donald Trump’s 50% tariffs on about $20 billion of Canadian goods. The company wants the levies struck down, their collection blocked and refunds ordered. The tariffs were imposed under Section 338 of the Trade Act of 1930, and took effect Aug. 22.
The legal argument
The suit alleges Trump overstepped his executive powers by invoking Section 338, a statute that has not previously been used to impose tariffs. It also argues that Canadian policies were not adequately identified. Section 338 was enacted 96 years ago.
The complaint also says a mandatory 30-day waiting period before expanding the list of affected products was not followed. Trump later added goods to the tariff list and imposed import bans on products such as motorcycles and beer.
A trade war with Canada
The U.S. and Canada have been in a trade war since negotiations broke down the day before the 50% tariffs took effect. Canada has since introduced retaliatory tariffs of its own.
The Supreme Court struck down tariffs imposed under emergency powers in February. The Court of International Trade later ruled in May that a temporary 10% tariff was illegal, a decision the administration is appealing. Those levies have expired.
Also Read
What lawyers expect
James Kim, an international trade partner at ArentFox Schiff, said the fight is likely to centre on the limits Congress placed on that authority. He said the challengers face a harder case than they did against the emergency-powers tariffs. “The Supreme Court held that IEEPA did not authorize tariffs,” Kim wrote. “Section 338 expressly does.”
Related: Canada retaliatory tariffs hit $20 bln of US goods · Canada prepares tariffs up to 50 percent on US goods
Source: Gellert Global Group
