President Donald Trump on Friday, October 23, 2026, removed 50% tariffs on several Canadian products and imposed new 50% duties on others. This action coincided with a U.S. food importer, Gellert Global Group, pursuing a lawsuit filed on October 20, 2026, that challenges the administration's tariff authority over Canadian goods.

The tariff adjustments impact various sectors, particularly agriculture in states like Maine, while the ongoing lawsuit questions the scope of presidential power in imposing trade restrictions, potentially affecting other businesses importing from Canada.

Tariff Changes and Political Context

President Trump's proclamation on October 23, 2026, exempted several Canadian products from 50% tariffs, including corrugated boxes, plastic sacks, packing machinery, refrigeration equipment, and seaweed. Senator Susan Collins (R-Maine), who is facing a difficult re-election campaign, publicly claimed she convinced the Trump administration to lift some of these tariffs. Her office indicated that Maine's blueberry, potato, and apple growers rely on Canadian harvesting boxes and equipment, which were among the exempted items. The White House stated the changes were made to "better serve the public interest". At the same time, the proclamation imposed 50% duties on new categories of Canadian products, such as shampoo, vinyl flooring, coffins, carpets, and window-unit air conditioners. Some valves and waste products also incurred these new tariffs. These adjustments are scheduled to become effective on October 30, 2026.

Lawsuit Challenges Authority

On October 20, 2026, the Gellert Global Group, a New Jersey-based food importer, initiated a lawsuit against the Trump administration in the U.S. Court of International Trade. The company, represented by the Liberty Justice Center, claims that the 50% tariffs on certain Canadian goods are unlawful. The lawsuit specifically targets duties imposed under Section 338 of the Tariff Act of 1930. Gellert Global Group, which imported approximately $71 million worth of Canadian cheese in 2025, estimates the tariffs could cost it around $40 million annually on cheese imports alone. Sara Albrecht, CEO of the Liberty Justice Center, stated Section 338 is a "dormant statute from 1930 that has never been used before," suggesting its application exceeds presidential power. The complaint alleges that Section 338 was implicitly repealed by Section 301 of the Trade Act of 1974 or is controlled by it. The lawsuit also claims the administration bypassed a required 30-day waiting period for newly added products. The Liberty Justice Center has also sought class-action status for all affected importers.

What we could not confirm

We could not confirm the specific impact of the new tariffs on shampoo, vinyl flooring, coffins, carpets, window-unit air conditioners, some valves, and waste products on U.S. businesses or consumers. We also could not confirm whether other U.S. companies plan to join the Gellert Global Group's class action lawsuit.