Staring down a $40M tariff bill, this American importer is suing Trump to end some tariffs on Canada
Gellert Global Group says tariffs are 'unsustainable,' confident in legal challenge
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tariffs → star → challenge
Inside a sprawling refrigerated warehouse, tucked into an industrial neighbourhood not far from New Jersey's Newark Airport, you'll find a new front in the U.S.-Canada trade war.
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you → sprawl → war
It's the headquarters of Gellert Global Group, a third-generation, family-owned food distribution company that is suing the Trump administration over its 50 per cent tariffs on certain Canadian goods and seeking refunds.
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that → own → refunds
In one of his first broadcast interviews since launching the lawsuit, Thomas Gellert, the company's CEO, says he felt he had to do something.
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he → launch → something
"We can't sustain a tariff like this on these products for much longer," he said during an interview with CBC News on the floor of the warehouse in Elizabeth, N.J.
Gellert Global Group imports roughly $80 million US worth of Canadian cheeses every year, including Celebrity goat cheese produced by Mariposa Dairy in Lindsay, Ont.
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Group → sustain → Lindsay
It also imports a range of Canadian-produced brie and camembert products.
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"Customers are not going to take price increases.
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Everyone is sort of beat down and tired from inflationary pressures," he said, confirming that his company is eating the cost of the tariffs for now.
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company → beat → tariffs
Thomas Gellert, CEO of Gellert Global Group, stands inside the company's refrigerated warehouse in Elizabeth, N.J.
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His company is suing the Trump administration over its 50 per cent tariffs on certain Canadian goods.
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company → sue → goods
Gellert tried to get exemptions for these products in meetings with American lawmakers and diplomats, including U.S. Ambassador to Canada Pete Hoekstra.
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Gellert → try → Hoekstra
In those conversations, he says he highlighted the fact that American-produced milk is being used for some of the cheese products hit by tariffs, arguing that, in the end, the policy is hurting U.S. farmers too.
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policy → say → farmers
And with no Canada-U.S. trade deal appearing to be on the horizon, Gellert decided he had to take legal action.
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he → appear → action
"Frankly we don't have time to wait for things to settle on their own," he said.
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he → have → own
"We have a business here to run."
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The lawsuit was filed by the Liberty Justice Center, a non-profit, non-partisan legal advocacy organization.
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lawsuit → file → Center
It is the same organization that successfully challenged Trump's IEEPA tariffs, which were struck down by the U.S. Supreme Court earlier this year.
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which → challenge → Court
"We felt like our job wasn't done if the President keeps putting illegal tariffs on different countries," said Sarah Albrecht, the chair and CEO of the Liberty Justice Center.
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Albrecht → feel → Center
The Trump administration imposed this round of tariffs after trade talks with Canada broke down in August.
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talks → impose → August
The duties are applied through Section 338 of the U.S. Tariff Act, also known as the Smoot-Hawley Act, a Depression-era law that had never been used before for tariff purposes.
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that → apply → purposes
The law gives the president the power to impose tariffs of up to 50 per cent on imported goods from a country that has discriminated against the U.S.
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that → give → U.S.
The Trump administration has argued that Canada's decision to retaliate against previous rounds of U.S. tariffs amounts to discrimination.
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decision → argue → discrimination
It specifically cited the banning of American alcohol products by certain provinces, protections for the Canadian dairy industry and measures related to the auto sector.
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In a statement released the day the lawsuit was filed, the Liberty Justice Center said Section 338 cannot be used as an "all-purpose authorization for the executive branch to impose sweeping tariffs or import restrictions whenever a trade dispute arises."
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dispute → release → tariffs
Among the arguments the group is making, it says there's a disconnect between allegations of discrimination by Canada and the products Trump is targeting with the tariffs.
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It also says the Trump administration illegally rushed the implementation of some of the tariffs.
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administration → say → tariffs
And it claims Trump does not have the authority to impose tariffs in this way.
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Trump to swap some tariffs on Canadian goods amid midterm pressure
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Canada scores a dairy win on U.S. soil as farmers grumble about Trump's trade war
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farmers → score → war
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," Albrecht said.
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Albrecht → have → limits
Initially, the tariffs applied to roughly $28 billion worth of Canadian goods, with targets including cement, road salt, hockey sticks and other items.
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targets → apply → cement
However, the list has been adjusted twice to remove some products and add others.
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list → adjust → others
Some of the changes were made at the request of Republican Sen. Susan Collins of Maine, as she finds herself in a tough re-election race.
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she → make → race
She has sought exemptions for products important to businesses in her home state, as the trade war with Canada is proving unpopular there.
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war → seek → Canada
Since the tariffs were first announced, legal experts have offered varying opinions on whether the measures would survive a legal challenge.
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measures → announce → challenge
"There's a good chance it could get reversed," said Ryan Majerus, a trade lawyer and partner at King & Spalding International Trade Group.
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"I think the administration may have a tough time identifying the reasons why these particular products or these particular actions by Canada are discriminatory.
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products → think → Canada
Lawyers for the Trump administration will have to make the connection, Majerus says, between the alleged discrimination and why the U.S. tariffs offset that discrimination.
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tariffs → have → discrimination
"The fact that there have been adjustments [to the product list] since they've been put in place ...
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I think it may undermine their claim as well," he said.
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…and 15 more, not listed.
The Aporia
