WASHINGTON – A federal judge has barred the Trump administration from collecting tariffs from two Illinois-based toy import companies, marking the second legal blow in as many days to one of former President Donald Trump’s key trade strategies.
Trump-era tariffs blocked – On May 29, U.S. District Judge Rudolph Contreras issued an order preventing the government from enforcing tariffs on Learning Resources and hand2mind, both located in Vernon Hills, Illinois, while their legal case proceeds. However, he delayed the effect of his ruling for two weeks to allow the government time to file an appeal.
This decision follows a ruling just one day earlier by the Court of International Trade, which struck down tariffs Trump had implemented on April 2 against multiple countries. Both Judge Contreras and the three-judge panel found that Trump lacked the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose the tariffs, countering the administration’s justification.
In his two-page ruling, Judge Contreras stated that the law “does not give the President the power to impose these tariffs.”
Learning Resources and hand2mind, which together employ 500 workers across Vernon Hills, Illinois; Torrance, California; and Amherst, New York, import a range of educational toys—including Spike the Fine Motor Hedgehog, Peekaboo Learning Farm, and Kanoodle—from countries such as China, Taiwan, South Korea, Vietnam, Thailand, and India.
The companies argued that while they managed to survive the economic challenges of the COVID-19 pandemic, the added burden of the tariffs could jeopardize their future. They claimed that Congress never gave the President the authority to unilaterally impose such sweeping tariffs.
“The weight of this burden falls hardest and most directly on America’s small and mid-sized businesses, including the plaintiffs in this case,” the lawsuit stated.
However, government attorneys countered that the International Emergency Economic Powers Act (IEEPA) gives the President the authority to “regulate imports,” which they argue includes the power to impose tariffs.
During a May 27 hearing, Justice Department attorney Brett Shumate urged Judge Contreras to transfer the case to the Court of International Trade, citing the specialized knowledge and experience of the judges on that court.
“If the court rules against the president, issuing an injunction would severely undermine his authority in international affairs, weaken his capacity to negotiate trade agreements, and jeopardize the government’s ability to respond to future national emergencies,” Shumate argued. “Any relief granted against the president under the IEEPA tariffs would have devastating consequences for national security and foreign policy.
”On May 28, a three-judge panel from the Court of International Trade struck down Trump’s tariffs. In response, government attorneys announced their intention to appeal the decision.
