Canada Challenge to Sec 338 Tariff in ITC to Come up on 20 Jan

[ABS News Service/04.11.2026

The International Trade Commission has set oral arguments in a case challenging President Trump’s imposition of Section 338 tariffs on Canadian products for January 20.

A decision could come any time after that date.

The case was filed by Gellert Global Group Corporation, a US-based food business. The company argues that the Administration exceeded its statutory authority in using Section 338, which is a never-before-used provision of the 1930 Smoot-Hawley Tariff Act.

Section 338 is meant to deal with foreign discrimination against US commerce. But the plaintiffs argue that the Administration imposed tariffs on Canadian products that are unrelated to its claims of discrimination and/or are covered under other agreements, like the US-Mexico-Canada Agreement.

Both President Trump and Canadian Prime Minister Carney have indicated in recent days that the two sides are moving closer to a trade deal. Although details are still unclear, it is possible that Washington could drop the Section 338 tariffs in exchange for concessions from the Canadian side.