It Was Only a Matter of Time: Importer Sues Trump Over Section 338 Duties

Oct. 21, 2026
By: Hannah B. Kreinik

Food importer Gellert Global Group Corporation, represented by the Liberty Justice Center, has filed suit in the U.S. Court of International Trade against President Trump’s Section 338 50% duties on Canadian dairy, automotive, and alcohol goods. President Trump originally implemented the duties back in September 2026 when trade negotiations with Canada soured.

The plaintiff, Gellert Global, claims that Section 338 was implicitly repealed by Section 301, and that the President may not implement tariffs under a repealed statute, or, in the alternative, cannot implement Section 338 duties on goods already covered by Section 301 duties. Gellert also claims that the Section 338 proclamations exceed the President’s statutory authority since the statute limits additional tariffs against a country when the country is “discriminating” against U.S. commerce. Gellert asserts that none of the Presidential Proclamations for Section 338 tariffs describe Canada’s “discrimination” towards U.S. dairy, automotive, or alcoholic goods. Third, Gellert claims that the Section 338 duties violate the nondelegation doctrine (a popular argument for many lawsuits against Trump tariffs). Finally, Gellert claims the Trump administration did not wait the statutory 30-day period before implementing the duties. The complaint also asserts a class action claim for all importers that have paid, or will pay, Section 338 duties for subject merchandise entered into the U.S.

It was only a matter of time when the Section 338 duties came before the court, and that time is apparently now. Like other Trump tariff cases, importers should not expect a quick final decision. It is likely that any U.S. Court of International Trade opinion will be appealed to the Federal Circuit Court of Appeals, and possibly the U.S. Supreme Court. It is also important to note that this complaint includes a class action certification request likely due to the most recent class action certification in the CIT in Freestyle World, Inc. v. United States (see our page regarding the class action here). If the class action is certified, and the plaintiffs ultimately win in court, then all importers that paid or will pay Section 338 duties will be covered for government refunds without the added obstacle of filing in court individually.

Barnes, Richardson & Colburn attorneys are here to help importers file complaints or CAPE claims for applicable tariff refunds.