# Gellert Challenges Canada Tariffs

Food importer Gellert Global Group filed a lawsuit on October 20, 2026, challenging the administration’s use of Section 338 of the Tariff Act of 1930 to impose tariffs of up to 50% on Canadian goods. The dispute raises questions about how Section 338 overlaps with Section 301 of the Trade Act of 1974, which may have more procedural safeguards. For procurement teams and contractors sourcing Canadian goods or relying on cross-border supply chains, the tariffs could affect input costs and sourcing plans; Congress has been urged to clarify or revise the authorities.

- Organizations exposed to Canadian imports should assess potential cost and supply-chain impacts from tariffs of up to 50%.
- The lawsuit challenges the administration’s use of Section 338; businesses can follow the litigation and any legislative changes for implications to their sourcing plans.
- The signal identifies no contract award, solicitation, or procurement deadline; the relevance is indirect through trade-related costs and supply availability.
- Congress may clarify or revise the overlapping tariff authorities, which could change the conditions affecting cross-border sourcing.

**Jurisdictions:** federal
**Topics:** Policy
**Published:** October 22, 2026

### Government Entities
- U.S. Congress
- Office of the United States Trade Representative (USTR)

### Sources
- [Congress must close this tariff loophole](https://thehill.com/opinion/international/6163849-trump-canada-tariffs-lawsuit) - The Hill