Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Gellert Global Group challenges Trump's Section 338 tariffs on Canadian goods. The administration calls the duties a response to discrimination. The importer argues that later trade laws and Section 338's own limits make them unlawful.
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Published by The Dispute Index editorial teamPublished Updated
Overview
The case concerns the Section 338 tariff action, not the separate Section 301 forced-labor tariffs. Gellert's complaint (opens in a new tab), filed October 20 in the Court of International Trade, requests an injunction and refunds. No remedy has been awarded in this case.
The complaint challenges July proclamations and later amendments. It argues that Section 301 displaced or limits Section 338, that the measures do not satisfy the older law's discrimination and offset requirements, and that September additions received only seven days rather than the required 30 days. These are the plaintiff's arguments.
Trump's dairy proclamation (opens in a new tab) argues that unequal access to Canadian quota allocations disadvantages U.S. commerce. Gellert says its cheeses were added under the alcohol and motor-vehicle proclamations, rather than the dairy proclamation. The lawsuit does not directly challenge the separate import bans.
People in this case
Donald TrumpDirectly involved
Ilya SominCommented
Timeline
2 timeline entries on this page. Dates: July 20, 2026 to October 20, 2026
July 2026
Trump issues the initial Section 338 tariff proclamations
Source release
The initial proclamations assert Canadian discrimination and impose additional duties. Later suspension and amendments affect the operative dates and covered products.
[01]Liberty Justice Center
The importer challenges the tariff proclamations and seeks declaratory relief, an injunction and refunds. Its allegations and requested remedies are not court findings.
Gellert Global Group v. Trump: complaint challenging Section 338 tariffs · Liberty Justice CenterCourt of International Trade, 26-cv-04636, Document 2, paragraphs 1-10, 63-69 and causes of action[02]Donald Trump
Trump states his discrimination findings and reasons for imposing duties. The complaint challenges this framework along with the alcohol and motor-vehicle proclamations and later amendments.
Proclamation 11047: additional duties responding to Canadian dairy discrimination · Donald TrumpFindings concerning dairy quota allocations and Section 338 authority
October 2026
Gellert files its Section 338 tariff challenge
Gellert files its complaint in the Court of International Trade and requests declaratory relief, an injunction and refunds for affected importers.
[01]Liberty Justice Center
The importer challenges the tariff proclamations and seeks declaratory relief, an injunction and refunds. Its allegations and requested remedies are not court findings.
Gellert Global Group v. Trump: complaint challenging Section 338 tariffs · Liberty Justice CenterCourt of International Trade, 26-cv-04636, Document 2, paragraphs 1-10, 63-69 and causes of action
Response record
Responses
Choose one response filter, or select All responses to see the full record.
7 responses. First 6 shown initially. Newest first.
Peter HarrellLawyer and international economic-policy specialist Before this statement
Before turning to whether Trump misapplied the statute, Harrell notes that Congress never explicitly repealed Section 338.
"I have written about Section 338 elsewhere and I find these arguments persuasive: Canada's acts that are the purported basis for the Section 338 tariffs are not "discrimination" within the meaning of the statute, and the tariffs do not "offset" the burden of the discrimination. At the very least, these arguments would mean a significant narrowing of the tariffs."
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Harrell finds persuasive the arguments that Canada's acts are not discrimination under the statute and that the tariffs do not offset it, and says they would at least significantly narrow the tariffs.
After the statement
Later, Harrell says it is hard to give odds on the litigation because Section 338 has not previously been used to impose tariffs.
Peter Harrell finds key arguments against the Section 338 tariffs persuasive · Peter HarrellPost 2112621419301409179Why this label?
Relative to imposing the Section 338 tariffs, Harrell finds the arguments against their statutory basis persuasive. His uncertainty about the litigation does not express support for the tariffs.
This label describes the statement's response within the context above.
Ilya SominLaw professor and legal commentatorBefore this statement
Somin says he previously worked with LJC on IEEPA litigation but is not directly involved in this case.
"But I support it and believe it deserves to prevail."
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Somin argues that the Section 338 tariff challenge should succeed.
After the statement
He explains statutory and constitutional grounds for rejecting the tariffs.
Ilya Somin supports the Section 338 tariff challenge · Ilya SominOpening paragraph and analysis of the complaint's statutory and constitutional groundsWhy this label?
Relative to the Section 338 tariffs, Somin rejects their legality. Supporting the lawsuit against them is not a defense of the tariffs.
This label describes the statement's response within the context above.
Gellert Global GroupCorporate plaintiff in the Court of International TradeDirectly involved Before this statement
In the complaint's prayer for relief, plaintiff Gellert Global Group Corp. asks the court to certify a class of importers and to declare that Section 338 has been impliedly repealed or, at a minimum, that Section 301 controls.
"Declare that Section 338 does not authorize the Section 338 Tariffs;"
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Gellert asks the court to declare that Section 338 does not authorize the tariffs.
After the statement
The complaint also asks the court to declare that Section 338 would be an unconstitutional delegation if it authorized the tariffs, to enjoin collection of the duties and to order refunds with interest. These are requests, not court rulings.
Gellert Global Group v. Trump: complaint challenging Section 338 tariffs · Liberty Justice CenterCourt of International Trade, 26-cv-04636, Document 2, paragraphs 1-10, 63-69 and causes of actionWhy this label?
Relative to imposing and collecting the Section 338 tariffs, Gellert's complaint asks the court to declare them unauthorized. That is a request for relief, not a ruling.
This label describes the statement's response within the context above.
Sara AlbrechtChairman and CEO of Liberty Justice Center Before this statement
In Liberty Justice Center's announcement of the Gellert lawsuit, Albrecht first says the case is not about the president but about the presidency.
"No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required"
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Albrecht argues that presidents cannot use a dormant statute to bypass Congress's limits.
After the statement
The release then says the challenge centers on the difference between foreign discrimination and ordinary trade disagreements.
Liberty Justice Center announces its Section 338 tariff lawsuitNamed statements in the releaseWhy this label?
Relative to imposing the Section 338 tariffs, Albrecht argues that the president is using a dormant statute without the limits Congress required.
This label describes the statement's response within the context above.
Jeffrey M. SchwabLiberty Justice Center litigation director and counsel for the tariff challenger Before this statement
Schwab first says Congress already gave the executive branch Section 301, which requires an investigation, public comment and other safeguards, for responding to unfair foreign trade practices.
"The administration cannot skip those protections by reaching for a 1930 statute that no president had ever used to impose a tariff"
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Schwab criticizes using Section 338 to bypass the procedures Congress provided in Section 301.
After the statement
Later, the announcement says the lawsuit asks the court to declare the tariffs unlawful, block their collection and order refunds with interest.
Liberty Justice Center announces its Section 338 tariff lawsuitNamed statements in the releaseWhy this label?
Relative to imposing the Section 338 tariffs, Schwab argues that the administration is bypassing the safeguards Congress set in Section 301.
This label describes the statement's response within the context above.
Thomas GellertCo-chief executive officer of Gellert Global Group Before this statement
In Liberty Justice Center's announcement, Gellert says the company has spent generations building trusted relationships with suppliers, customers and partners across the food industry.
"These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain"
CondemnedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Gellert criticizes the tariffs for disrupting business relationships and creating costs and uncertainty.
After the statement
The release next discusses whether Section 338 could become a broad tariff authority beyond Canada.
Liberty Justice Center announces its Section 338 tariff lawsuitNamed statements in the releaseWhy this label?
Relative to imposing the Section 338 tariffs, Gellert criticizes their effect on his company's relationships and supply chain.
This label describes the statement's response within the context above.
Show fewer responses
Donald TrumpPresident of the United StatesDirectly involvedBefore this statement
The proclamation compares Canadian quota allocations under USMCA and CETA.
"I find as a fact that Canada is discriminating in fact against the commerce of the United States"
Defended or excusedCase context: Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
Full statement and sources
Trump argues that unequal Canadian dairy quota access justifies additional duties.
After the statement
The proclamation invokes Section 338 to impose additional duties.
Proclamation 11047: additional duties responding to Canadian dairy discrimination · Donald TrumpFindings concerning dairy quota allocations and Section 338 authorityGellert Global Group v. Trump: complaint challenging Section 338 tariffs · Liberty Justice CenterCourt of International Trade, 26-cv-04636, Document 2, paragraphs 1-10, 63-69 and causes of actionWhy this label?
Relative to imposing the Section 338 duties, Trump supplies the discrimination finding as a reason for the action.
This label describes the statement's response within the context above.
Sources
(5)
Original text
Gellert Global Group v. Trump: complaint challenging Section 338 tariffs
Relevant passage: Court of International Trade, 26-cv-04636, Document 2, paragraphs 1-10, 63-69 and causes of action
About this source
The importer challenges the tariff proclamations and seeks declaratory relief, an injunction and refunds. Its allegations and requested remedies are not court findings.
- Author
- Jeffrey M. Schwab and Reilly Stephens, counsel for Gellert
- Published
- Accessed
Official statement
Liberty Justice Center announces its Section 338 tariff lawsuit
Relevant passage: Named statements in the release
About this source
Liberty Justice Center represents Gellert Global Group in the tariff challenge. The release includes named comments from Sara Albrecht, Jeffrey Schwab and Thomas Gellert. It is dated October 20, 2026; no publication time is given.
- Author
- Liberty Justice Center
- Published
- Accessed
Original post
Peter Harrell finds key arguments against the Section 338 tariffs persuasive
About this source
Peter Harrell's post comments on imposing the Section 338 Canada tariffs. Harrell analyzes Gellert's complaint and distinguishes several legal arguments.
- Author
- Peter Harrell
- Published
- Accessed
Analysis
Ilya Somin supports the Section 338 tariff challenge
Relevant passage: Opening paragraph and analysis of the complaint's statutory and constitutional grounds
About this source
Somin supports the lawsuit and says he is not directly involved in this case. He previously worked with its counsel on other tariff litigation.
- Author
- Ilya Somin
- Published
- Accessed
Official statement
Proclamation 11047: additional duties responding to Canadian dairy discrimination
Relevant passage: Findings concerning dairy quota allocations and Section 338 authority
About this source
Trump states his discrimination findings and reasons for imposing duties. The complaint challenges this framework along with the alcohol and motor-vehicle proclamations and later amendments.
- Author
- Donald J. Trump
- Published
- Accessed
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Cite this record
- Publisher
- The Dispute Index
- Title
- Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge
- First published
- Last updated
- Permalink
- https://disputeindex.com/cases/trump-section-338-canada-tariffs-gellert-lawsuit
The Dispute Index. "Trump's Section 338 Canada tariffs face Gellert Global Group's legal challenge". First published: 2026-10-21. Last updated: 2026-10-21. https://disputeindex.com/cases/trump-section-338-canada-tariffs-gellert-lawsuit