A U.S. food importer facing up to $40 million in annual tariffs on Canadian dairy products is taking President Donald Trump's administration to court, seeking an end to the charges and refunds for money already paid.
Here's what to know
Gellert Global Group imports Canadian cheeses, including Brie and goat cheese, that are subject to a 50% tariff, according to CBC News. The outlet illustrated the trade dispute's effects by showing the affected products at one of the company's American warehouses.
@cbcnews A U.S. food importer facing a tariff bill for possibly as much as $40 million U.S. for the year on some Canadian dairy products is fighting back. After losing faith a trade deal could be reached, Thomas Gellert, CEO of Gellert Global Group, says the company has decided to sue the U.S. government to try to end the tariffs and get refunds. #Tariffs #Dairy #Tradewar #News #CBCNews ♬ original sound - CBC News
Litigation became the company's alternative to a negotiated solution, CEO Thomas Gellert said, after it lost confidence that a trade agreement would resolve the issue. The tariffs were imposed following the breakdown of trade talks in August.
A mismatch between the taxed products and the tariffs' legal justification is one of the company's objections. Its lawsuit also argues that Congress holds the taxing power and that the president therefore lacks authority to impose these charges.
More background
The dispute affects businesses that supply food to American customers.
"50% is not sustainable," Gellert said, noting that the importer had already spent a year and a half navigating a difficult business environment.
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Passing the added cost of Canadian dairy on to customers would mean raising prices they are unwilling to pay, Gellert said. He attributed that resistance to consumers' weariness with inflationary pressure.
What's being done?
Recovering past payments, as well as ending the dairy tariffs, is the outcome Gellert Global Group hopes its lawyers' experience will help secure. CBC reported that the company has retained lawyers who previously won a challenge to other Trump tariffs.
"Things don't move quickly through the courts," the CBC News report noted.
One user on the outlet's post also expressed skepticism: "I don't think they will do that."
An agreement between the two countries could let the importer sell the affected cheeses without the additional tariff, giving it an alternative to relying entirely on a lengthy court process. The company is hoping for that negotiated outcome alongside its lawsuit.
"Customers are not gonna take price increases. Everyone is, everyone is sort of beat down and tired under the inflationary pressures and consumers are tired. So we can't really increase prices 50% something we can't absorb," he said.
Where can I learn more?
Tariffs are squeezing other businesses and household budgets, too. These stories cover Canadian whey prices, California grocery and gas costs, farmers' trade concerns, and vehicle tariff threats.
• In Canada, whey protein prices more than double as tariffs deepen a global shortage.
• California shoppers say grocery and gas costs squeeze budgets as tariffs hit Canadian goods.
• Fresno County farmers press for tariff-free trade, warning the dispute could raise produce prices.
• Trump threatens 50% tariffs on Canadian-built vehicles, including Silverados, RAV4s, and CR-Vs.
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