Gellert Global Group, a New Jersey-based specialty food importer, has initiated legal action within the U.S. Court of International Trade. The company is contesting massive new duties on Canadian imports, specifically targeting 50% tariffs on goods like goat-milk cheese.
The $60,000 tax on a $120,000 cheese shipment
The financial impact of these new trade measures is immediate and severe for specialty food distributors. According to the filing, a single shipment of goat's-milk cheese valued at approximately $120,000 recently triggered over $60,000 in tariffs. This represents a massive spike in overhead that threatens the viability of niche import businesses.
Gellert Global Group estimates that these 50% duties could cost the company roughly $40 million annually on cheese imports alone. co-CEO Thomas Gellert has noted that these sudden changes create immense uncertainty for the entire supply chain, making long-term investment nearly impossible for importers who rely on stable Canadian partnerships.
Weaponizing Section 338 of the Tariff Act of 1930
The core of the legal dispute involves the administration's decision to utilize Section 338 of the Tariff Act of 1930 to enforce these duties . The Liberty Justice Center, which is representing Gellert Global Group, argues that this specific statute is being used far outside its intended scope. They contend that Section 338 was designed to combat illicit activities, such as the smuggling or delivery of illegal drugs, rather than to serve as a tool for broad trade wars.
As the report notes, the plaintiffs argue that no president should have the authority to pull a "dormant statute" off the shelf to impose sweeping import bans without explicit congressional permission. This legal strategy follows a pattern of the Trump administration attempting to use various federal trade laws,including Section 122 and Section 301, to implement aggressive tariff policies.
A retaliatory cycle following the 2025 USMCA collapse
This litigation emerges from a period of intense diplomatic friction between the United States and Canada. Following the collapse of USMCA negotiations in August 2025, both nations began a cycle of retaliatory tariffs that has significantly destabilized North American trade. The political tension was further exacerbated by public vitriol exchanged between President Donald Trump and Canadian Prime Minister Mark Carney.
This escalation follows a significant legal setback for the administration in February, when the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose these specific types of tariffs. Despite that ruling, the administration has continued to seek alternative statutory justifications for its trade enforcement actions.
Will the U.S. Court of International Trade curb presidential authority?
The outcome of this case remains one of the most significant unanswered questions in modern trade law. It is currently unclear how the Trump administration will defend its interpretation of Section 338,or if the government will provide a formal rebuttal to the claim that these duties are being used for political retaliation rather than economic enforcement. Additionally,the source does not specify if other major importers are planning to join Gellert Global Group in this specific legal challenge.
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