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Liberty Justice Center Sues Trump Over Section 338 Tariffs

By Drooid · Oct 24, 2026, 6:14 PM UTC · How we work

Summary

Story summary

Liberty Justice Center filed a lawsuit against President Donald Trump’s Section 338 tariffs on Oct. 20, 2026.
The suit claims 50 percent duty on $20 billion of Canadian imports exceeds constitutional tariff power.
Gellert Global says the tariffs could cut its profits by $40 million annually.
The complaint seeks class-action status and a court order declaring the tariffs unlawful.
The suit argues Section 338 is superseded by later statutes such as the 2026 Trade Act.

History

Historical Context

In 1994 the United States, Canada and Mexico signed NAFTA, removing about $300 billion in tariffs and ending a 15 percent duty on $45 billion of Canadian auto parts. Liberty Justice Center now challenges Donald Trump’s Section 338 tariffs that impose a 50 percent duty on $20 billion of Canadian imports, arguing they exceed constitutional authority. A court ruling could revive NAFTA-style liberalization and reshape U.S. tariff policy.

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Story summary

Liberty Justice Center filed a lawsuit against President Donald Trump’s Section 338 tariffs on Oct. 20, 2026.
The suit claims 50 percent duty on $20 billion of Canadian imports exceeds constitutional tariff power.
Gellert Global says the tariffs could cut its profits by $40 million annually.
The complaint seeks class-action status and a court order declaring the tariffs unlawful.
The suit argues Section 338 is superseded by later statutes such as the 2026 Trade Act.

1 / 2