A second US court blocks Trump tariffs

A federal judge has temporarily blocked the Trump administration from collecting tariffs from two Illinois-based toy companies, marking the second time in as many days that courts have halted one of President Donald Trump’s primary trade tactics.

On May 29, U.S. District Judge Rudolph Contreras issued an order preventing the government from collecting tariffs from Learning Resources and hand2mind, both located in Vernon Hills, Illinois, while their lawsuit proceeds. He delayed the enforcement of his decision for two weeks to allow the administration time to file an appeal.

This ruling followed a decision just one day earlier by the Court of International Trade, which struck down tariffs imposed by Trump on April 2 against multiple nations. Both Contreras and the three-judge CIT panel found that the president lacked the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose the tariffs as he had done.

“The statute does not authorize the President to impose the tariffs,” Judge Contreras wrote in his brief, two-page ruling.

Learning Resources and hand2mind, which together employ around 500 people across Vernon Hills, Illinois; Torrance, California; and Amherst, New York, import educational toys such as Spike the Fine Motor Hedgehog, Peekaboo Learning Farm, and Kanoodle from a range of countries, including China, Taiwan, South Korea, Vietnam, Thailand, and India.

The companies, which say they weathered the economic disruption of the COVID-19 pandemic, argue that the tariffs pose a threat to their survival. Their legal filing contends that Congress never gave the president the unilateral power to impose sweeping tariffs.

“The crushing burden is felt most immediately and acutely by this country’s small and mid-size businesses, including Plaintiffs,” the suit stated.

Government attorneys countered that the IEEPA does, in fact, allow the president to “regulate importation,” which they say includes the ability to impose tariffs.

During a May 27 hearing, Justice Department lawyer Brett Shumate urged Judge Contreras to consider transferring the case to the Court of International Trade, citing that court’s specialized expertise in trade-related matters.

Meanwhile, President Trump defended his tariff strategy during April 2 remarks in the White House Rose Garden, framing the measures as vital tools for negotiating better trade deals.