Federal judge blocks Trump’s tariffs on China’s imports in toy company lawsuit
A federal judge in Washington, D.C. stood with a Chicago-area toy company on Thursday to block five execution orders signed by President Donald Trump that imposes tariffs on Chinese imports.
U.S. District Judge Rudolph Contreras determined that the International Economic Emergency Economic Forces Act (IEPA) did not authorize Trump to impose tariffs in the execution order.
Contreras approved by Toys Company, Learning Resources, Inc. The motion for a preliminary injunction is filed, and the company will stay for 14 days if the government decides to appeal the decision.
President Donald Trump defended his tariff policy in an interview with NBC News on Sunday, saying he would approach CEOs like Jeff Bezos if he had a disagreement on his response to tariffs or other issues. (NBC News)
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Trump announced his “Liberation Day” reciprocity tariff plan on April 2, imposing a 10% benchmark tariff on all countries.
In some countries, hostile negotiations have led to higher taxation, with China’s import tax rate reaching 145%.
Traders worked on the floor of the New York Stock Exchange (NYSE) in New York City on March 28, 2025. As President Trump’s escalating trade war and new signs of revitalizing inflation are linked to investors, the Dow Jones Industrial Average (DJI) has dropped by more than 700 points or close to 1.7%. (Spencer Platt/Getty Images)
Learning Resources CEO Rick Woldenberg said in April that a third-generation family business that has been manufacturing in China for four decades will face nearly 98% of its tariff bill.
He said the $2.3 million paid by the company in 2024 will jump to $100.2 million in 2025.
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“I wish I had $100 million,” Waldenberg wrote in a statement. “Honest to God, no exaggeration: It feels like a few days of doom.”
According to a report by Macquarie Investment Bank, China produces 97% of baby strollers imported from the United States, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children’s coloring books and 90% of combs.
Finance Minister Scott Bessent can see it before meeting with Chinese officials on Geneva tariffs on May 10, 2025. (Fabrice Coffrini/AFP via Getty Images)
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On Wednesday, the U.S. Court of International Trade ruled that the government surpassed its powers to tariffs under Ieepa.
“The Constitution grants Congress exclusive powers to ‘tax and collect taxes, duties, impersonation and excise taxes, and ‘regulating trade with foreign countries’,” the court wrote in its opinion. “In the two cases before the court, the question is whether the International Emergency Economic Powers Act of 1977 (‘ieepa’) entrusted these powers to the President with the power to impose unlimited tariffs on goods in almost every country in the world.”
Three judges appointed by former President Ronald Reagan, Barack Obama and Trump found that Ieepa did not “grant such unlimited authority.”
President Donald Trump made a highly-watched comment on reciprocity tariffs at an event held in Rose Garden in Washington, D.C. on April 2, 2025. Trump is preparing to unveil new tariffs to threaten a shocking global trade war. (Brendan Smialowski/AFP via Getty Images)
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According to Reuters, the Trump administration appealed the decision to the U.S. Supreme Court, but it is not clear which commodities will be subject to tariffs during this period.
“Foreign non-critical treatment of the United States has exacerbated the historical and ongoing trade deficits in the United States,” White House spokesman Kush Desai told Fox Business after the decision. “These deficits have created a national emergency that has destroyed American communities, abandoned our workers, and weakened our defense industrial base, a fact that the courts have not challenged.”
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“It is not the elected judge who decides how to properly resolve the national emergency,” Desai added. “President Trump promises to put the United States first, and the administration is committed to using every leverage of the executive to resolve this crisis and restore American greatness.”
Greg Wehner and Bill Mears of Fox Business, Reuters contributed to the report.
