Importer sues to kill Trump's 50% Canada tariffs, says its cheese duty is $40 million a year

A new lawsuit filed Tuesday challenges the 50% tariffs President Donald Trump put on a range of Canadian goods under Section 338 of the Tariff Act of 1930, according to CNBC. The plaintiff is Gellert Global Group, a New Jersey food importer, and the case is in the U.S. Court of International Trade. The New York Times also reported the filing.

What the complaint asks for

CNBC reports the complaint asks the court to declare the tariffs unlawful, block enforcement, and order refunds of duties already paid, with interest. It argues Section 338 was "impliedly repealed" by later trade legislation. It also argues that even if the law survives, the administration did not make the findings the statute requires, because the Canadian actions cited in the proclamations "do not discriminate against the United States."

Gellert is represented by the Liberty Justice Center, the group that won the case against the "reciprocal" tariffs. CNBC says the Supreme Court struck those down in February and that the administration is refunding an estimated $166 billion.

The number behind the number

The plaintiff's own figures show how this lands on one importer. Gellert says it imported $71 million of Canadian cheese in 2025, paid no tariff on it under USMCA, and now pays a 50% duty on entered value, which it estimates at $40 million a year. It says it will absorb the cost through the end of the year but that this is "not sustainable long term." These are claims in a complaint, not findings by a court.

Trump signed three proclamations on July 20 covering Canadian imports tied to the motor vehicle, alcohol and dairy sectors, and the tariffs took effect Aug. 22, CNBC reports. Canada responded with "dollar for dollar" tariffs on U.S. goods. We covered the alcohol branch in our look at the ban on Canadian beer, wine and spirits.

Who it actually hits

The exposed businesses are importers, distributors and the shops they supply. Our directory counts 31,725 independent liquor stores and 109,039 independent grocery and convenience stores in the United States. Not all carry Canadian products, but those that do depend on an importer deciding whether to absorb a 50% duty or pass it on, which is the choice Gellert describes.

• Specialty grocer or cheese shop: a 50% duty on entered value is a large share of cost on a product with no easy substitute. Expect price increases or thinner assortments rather than a fast fix.
• Importer paying duty now: a refund is only possible if a court rules for plaintiffs. Whether an importer who has not sued can recover anything is not settled by this filing.

What to watch

This is a filing, not a ruling. The White House had not responded to CNBC's request for comment, and the Section 338 tariffs remain in effect. Any decision on a stay, expedited review or refunds would be the next real signal. Importers who pay these duties can keep records of entry dates and amounts paid, since refund fights usually turn on them.

Sources: CNBC; New York Times; CheckThisBiz business counts. This is market information, not investment advice.