Gellert Global Group Sues Trump over Canadian Dairy Tariffs
Gellert Global Group, a New Jersey-based family-owned food importer, has brought a legal challenge against the Trump administration in a federal court in New York. The case was filed by the Liberty Justice Center on the company’s behalf and disputes the legality of customs duties imposed on Canadian dairy products and other goods entering the United States.
The company argues that the administration exceeded its constitutional authority by imposing the tariffs without approval from Congress. Gellert has imported specialty Canadian cheese for about a century and supplies retail and foodservice customers through established distribution networks. Its lawyers say the duties could leave the company facing roughly $40 million in additional costs each year.
The lawsuit focuses on Section 338 of the Tariff Act of 1930, a provision associated with the Smoot-Hawley Trade Act. The statute was created to address discriminatory treatment of American commerce abroad. According to the legal challenge, it had not previously been used in modern times to impose punitive duties on domestic importers.
The administration activated the provision after trade negotiations between Ottawa and Washington broke down in August, according to the filing. The resulting executive orders covered Canadian dairy products, alcoholic beverages, furniture and sporting equipment. Gellert’s representatives contend that using dormant legislation in this way conflicts with existing trade laws and the constitutional division of powers.
The importer says its Canadian cheese business depends on multi-year supply agreements, specialised refrigerated transport and inventories planned around specific customer requirements. It argues that imported products cannot be replaced or redirected immediately without affecting retail specifications and supply commitments. Distributors, foodservice operators, processors and supermarket deli businesses may therefore have to absorb higher delivered costs or raise prices, according to the company.
Gellert also says the tariffs would require importers to provide cash bonds or make customs payments before goods enter the country, placing pressure on working capital. The complaint asks the court to declare the duties unlawful, block their continued collection through a permanent injunction and order the government to refund duties already collected by US Customs and Border Protection, together with interest. Administration officials have said executive actions will be defended in court on national economic-security grounds.
