Oct 24, 2026
For roughly 100 years, a family-run company in New Jersey has been bringing Canadian cheese to American tables: brie, camembert, mascarpone and sheep’s and goat’s milk varieties. Now it says a single tariff will cost it US$40 million a year.
On Oct. 20, 2026, Gellert Global Group sued the Trump administration. It argues the White House pulled a Depression-era law off the shelf to impose tariffs it has zero authority to actually impose. The legal group behind the suit describes its running battle with Trump’s shifting tariff tactics as “a game of whack-a-mole.”
Advertisement
While the court case is American, Canadians have real money riding on how this trade fight unfolds. That money shows up in the price of U.S.-made appliances and in what your mortgage costs to renew.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
What is the lawsuit actually challenging?
The Liberty Justice Center, a non-profit public-interest law firm, filed the lawsuit in the U.S. Court of International Trade on behalf of Gellert, a third-generation family business.
The target is Section 338 of the Tariff Act of 1930, better known as the Smoot-Hawley Tariff Act.
On July 20, Trump signed three proclamations adding a 50% duty on certain Canadian goods, which included, among other things, cheese and other dairy. The duties took effect Aug. 22 after trade talks collapsed. That makes it the first time a president has used the law this way.
According to the complaint, Gellert did not pay duty on the Canadian cheese it imported under the Canada-United States-Mexico Agreement (CUSMA). The company imported US$71 million worth of Canadian cheese in 2025. Today it pays 50% on the entered value.
The suit is asking the court to declare the tariffs unlawful and order refunds with interest. In a news release, the centre argued that no president should be able to revive a dormant statute to impose sweeping tariffs without the limits Congress requires. A Trump administration official told The Canadian Press, on background, that the U.S. government will vigorously defend its actions.
Must Read
- A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 20,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why should a U.S. court case matter to Canadians?
The tariff war is going both ways across the border. Since Sept. 8, Canada has applied counter-tariffs of 15%, 25% and 50% on about CA$27.6 billion of U.S. imports. The targeted sectors include dairy, appliances, farm equipment, furniture, apparel and electronics.
Then Trump escalated. Washington announced import bans on certain Canadian goods, including motorcycles, alcoholic beverages and whey products.
Advertisement
For Canadian shoppers, U.S.-made goods on Canada’s list may cost more if retailers pass the surtax along to customers. For the broader economy, the toll is already showing. The Parliamentary Budget Office (PBO), Parliament’s independent fiscal watchdog, now expects real growth of 0.9% this year and 1.5% in 2027, down from 1.1% and 1.6% in June.
Could winning in court actually lower costs?
Winning in court could possibly lower costs, but don’t count on it soon. Tariff challenges can and do succeed. In February, the U.S. Supreme Court struck down Trump’s earlier “reciprocal” tariffs, and Washington is refunding an estimated US$166 billion to importers.
That earlier case also explains the ‘whack-a-mole’ problem. When one legal tool gets blocked, another can replace it. Section 338 itself has already been used to expand product lists and add import bans.
A win for Gellert would also only address U.S. duties. Canada’s counter-tariffs are Prime Minister Mark Carney’s decision.
Which Canadians are most exposed?
Several groups feel this tariff war most directly:
- Workers and businesses in dairy, alcohol and manufacturing that sell covered goods into the U.S.
- Households facing a 2027 mortgage renewal. The PBO assumes the BoC will start raising its policy rate in early 2027 and reach 2.75% by midyear.
- Shoppers making big-ticket purchases of U.S.-made goods.
There is some relief in the grocery line now. Food prices rose just 1.7% year over year in September, while overall inflation hit 3.1%, mostly due to gasoline.
What does this cheese fight mean for your budget?
A century-old cheese route from Canadian dairies to American tables now hinges on an American trade court, and so do some of the costs Canadians face at home. Gellert is fighting for its US$40 million a year in court, while your share of this tariff fight is likely to show up more quietly, in the price of a U.S.-made appliance or the rate on your next mortgage renewal.
Watch the ruling, but budget for the trade fight Canadian households are living with today. As parliamentary budget officer Annette Ryan put it, “Canada faces a more challenging economic and fiscal outlook than we projected in June.”
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
