6 days ago
Second federal court blocks Trump tariffs, this time for Illinois toy importers
WASHINGTON – A federal judge blocked the Trump administration from collecting tariffs from a pair of Illinois toy importers, the second court in two days to nullify President Donald Trump's top strategy for trade deals.
U.S. District Judge Rudolph Contreras ordered the administration May 29 not to collect tariffs from Learning Resources and hand2mind based in Vernon Hills, Illinois, while the case is litigated. He paused the impact of his ruling to give the government two weeks to appeal his decision.
The ruling came a day after the Court of International Trade overturned Trump's tariffs imposed April 2 on numerous countries. Contreras and the three-judge panel ruled that the 1977 International Emergency Economic Powers Act (IEEPA) didn't grant Trump the authority to impose tariffs as he claimed.
The statute "does not authorize the President to impose the tariffs," Contreras wrote in his two-page order.
Learning Resources and hand2mind employ 500 people in Vernon Hills, Illinois; Torrance, California; and Amherst, New York. The companies import toys such as Spike the Fine Motor Hedgehog, Peekaboo Learning Farm and Kanoodle from countries including China, Taiwan, Korea, Vietnam, Thailand, and India.
The toy companies say they survived COVID-19 but that the tariffs could kill them. They argued that Congress never authorized the president to impose huge tariffs on his own.
'That crushing burden is felt most immediately and acutely by this country's small and mid-size businesses, including Plaintiffs,' the lawsuit said.
But government lawyers argued the IEEPA statute granted the president authority to "regulate importation," including by setting tariffs.
Brett Shumate, a Justice Department lawyer, told Contreras during a hearing May 27 he should transfer the case to the Court of International Trade because of the expertise of those judges.
'If the court were to conclude otherwise, granting an injunction would kneecap the president on the world stage, cripple his ability to negotiate trade deals and imperil the government's ability to respond to future national emergencies,' Shumate said. 'Granting any form of relief against the president under IEEPA tariffs would be catastrophic for our national security and foreign policy.'
A three-judge panel of the Court of International Trade overturned Trump's tariffs May 28. Government lawyers said they would appeal.
(This is a developing story. Check back for details.)
This article originally appeared on USA TODAY: Second federal court blocks Trump tariffs - for Illinois toy importers
