Trump Administration Sued Over 50% Tariffs on Canadian Goods, Including Alcohol

President Donald Trump responds to reporters upon arrival on Marine One at the White House, Tuesday, Oct. 20, 2026, in Washington. (AP Photo/Manuel Balce Ceneta)

The Trump administration is facing a lawsuit challenging its 50% tariffs on Canadian goods, including alcohol, with the plaintiffs arguing that the president exceeded his authority by imposing the duties without congressional approval.

The Liberty Justice Center filed the suit Tuesday in the U.S. Court of International Trade on behalf of Gellert Global Group, a New Jersey-based food importer that estimates the tariffs will cost it $40 million a year on Canadian cheese imports.

The lawsuit also challenges the administration’s use of Section 338 of the Tariff Act of 1930, a rarely used provision that allows the president to impose tariffs in response to discriminatory foreign trade practices. The legal center is seeking a preliminary injunction to block the duties.

The tariffs, announced in August and effective Sept. 9, cover a range of Canadian goods, including whiskey, malt beer, sparkling wine, vermouth, cider and other spirits. They came on top of existing U.S. tariffs on Canadian aluminum, lumber, vehicles and steel.

The White House has argued that Canada discriminates against American businesses, including dairy and alcohol producers.

“Congress empowered the President under Section 338 to offset the burden or disadvantage from discrimination by foreign governments in favor of other foreign commerce, including Canada’s continued discrimination against American dairy, alcohol, and auto exports,” the White House said, according to the Liberty Justice Center.

The Liberty Justice Center previously challenged the Trump administration’s tariffs under the International Emergency Economic Powers Act. In February, the Supreme Court struck down a broad set of tariffs imposed under that law. The new lawsuit targets a different legal basis for the duties.

Gellert Global Group imported $71 million worth of Canadian cheese last year, including brie, mascarpone, camembert and goat’s milk cheese. The company also exports American dairy products to Canada, leaving it exposed to trade barriers on both sides of the border.

“These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain,” said Thomas Gellert, co-chief executive of Gellert Global Group.

One supplier buys milk from dairy farmers in upstate New York, processes it into brie in Canada and then ships the finished cheese back to the United States.

The administration’s Canadian tariffs followed a breakdown in trade negotiations between President Donald Trump and Canadian Prime Minister Mark Carney. Canada also imposed retaliatory tariffs on U.S. goods as the dispute escalated.

The White House said the lawsuit would not change its position.

“Today’s complaint will not deter President Trump’s commitment to level the playing field for American workers, farmers, and firms, and the Administration will defend vigorously the President’s actions in court.”