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US food company challenges Trump’s 50% tariffs on Canadian goods

BBC World ·

A US food company and the Liberty Justice Center have sued the Trump administration over 50% tariffs on some Canadian imports, arguing the White House exceeded its legal authority. The case matters because it challenges how far a president can use an old trade law to impose tariffs during a dispute, and seeks to stop collection of the duties.

The tariffs cover about $20bn of Canadian goods, including cheese, wine, dairy products and hockey sticks. The suit says Section 338 of the 1930 Tariff Act requires 30 days’ notice, but cheese was added only a week before collection began; it also argues that a later law superseded Section 338. The group is seeking refunds with interest and a preliminary injunction, in its fourth case against Trump’s tariffs.

  • A new lawsuit challenges 50% US tariffs on Canadian goods.
  • Gellert Global Group says the cheese duties are harming its business.
  • The case questions the president’s authority under a 1930 trade law.

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The United States and Canada trade a wide range of goods, including food and sporting equipment. Tariffs are taxes on imports, usually paid by the company bringing goods into a country, and can raise the cost of those goods.

The dispute centres on Section 338 of the 1930 Tariff Act, an old US law that allows tariffs in certain circumstances. The food company and the Liberty Justice Center say the administration did not follow the law’s notice rules and that a later law replaced it; the administration’s position will be tested in court.

The case matters because it could help define the limits on a president’s power to impose tariffs under older trade laws. The lawsuit also seeks refunds with interest and a court order to pause collection while the case proceeds.

World

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Originally published by BBC World as “Trump sued over Canadian tariffs in latest legal challenge”.