On October 20, 2026, food importer Gellert Global Group Corp. (“Gellert”) filed the first lawsuit against the President’s 50% Section 338 tariffs on Canadian goods (CIT 26-04636). It asks the Court of International Trade (CIT) to certify a nationwide class of importers, declare Section 338 tariffs unlawful, and enjoin their collection, including through liquidation of entries subject to those duties. See the complaint here.
The duties and the September 29 import bans on certain Canadian alcoholic beverages, dairy products, and motor vehicle products stay in force unless the court enjoins them. Section 338 has never been tested in court.
Gellert is suing for itself and for a proposed nationwide class under CIT Rule 23. The class would include every “importer[] of record that have paid, or will be required to pay, duties imposed under the Section 338 Action on merchandise entered for consumption, or withdrawn from warehouse for consumption, in the United States or on after August 22, 2026.”
Gellert also proposes a “30-Day Subclass” of importers that “paid duties imposed under the Section 338 Action on articles first enumerated in Proclamation 11064 or 11065 and entered for consumption, or withdrawn from warehouse for consumption, on or after September 15, 2026, and before October 8, 2026.”
Until the court rules in this new case, the class is only proposed, so importers should not assume this case protects their refund rights. Importers that have paid significant Section 338 duties may want to get ahead by filing their own protective action now, rather than relying on the class alone.
Should you have questions about the Section 338 duties and import bans; how these measures affect your specific imports; or whether to file your own action to preserve your right to a refund, please contact one of our trade law professionals listed here.
Lawsuit Challenges New Section 338 Tariffs Against Canada