Federal judge blocks Trump tariffs on Chinese imports in toy company lawsuit
A federal judge in Washington, D.C., has made a significant ruling in favor of a Chicago-area toy company, Learning Resources, Inc., by blocking five executive orders signed by President Donald Trump that imposed tariffs on Chinese imports. The judge, Rudolph Contreras, determined that the International Emergency Economic Powers Act (IEEPA) does not authorize Trump to impose these tariffs through executive orders.
Learning Resources, Inc. filed a motion for a preliminary injunction, which was granted by Contreras. The injunction will be stayed for 14 days in case the administration decides to appeal the decision. This ruling comes as a blow to the Trump administration’s tariff policy, which has been a cornerstone of the president’s economic agenda.
President Trump defended his tariff policy in a recent interview with NBC News, stating that he would reach out to CEOs like Jeff Bezos if he has disagreements over their response to tariffs or other issues. The Trump administration’s “Liberation Day” reciprocal tariff plan, announced on April 2, imposed a 10% baseline tariff on all countries, with even higher levies in certain cases, particularly with China where tariffs reached as high as 145%.
Rick Woldenberg, CEO of Learning Resources, Inc., expressed concerns over the substantial increase in tariffs that the company would face as a result of Trump’s executive orders. The company, which has been manufacturing in China for four decades, projected a nearly 98% increase in its tariff bill, from $2.3 million in 2024 to $100.2 million in 2025.
The U.S. Court of International Trade also ruled that the administration had overstepped its authority with tariffs under IEEPA. The court stated that the Constitution assigns Congress the exclusive powers to regulate commerce with foreign nations and that IEEPA does not confer unlimited tariff authority to the president.
The Trump administration has appealed the decision to the Supreme Court, but in the meantime, it is unclear what goods will be subject to tariffs. White House spokesperson Kush Desai defended the administration’s tariff policy, citing national emergency and trade deficit concerns. Desai emphasized that it is not for unelected judges to decide how to address a national emergency and reaffirmed the administration’s commitment to using executive power to address the trade crisis and restore American greatness.
This ruling sets a significant precedent in the ongoing debate over tariffs and executive authority. It remains to be seen how the Trump administration will respond to this setback and how it will impact future trade policy decisions. Stay tuned for further developments on this issue.
