3 days ago
Judge temporarily blocks Trump tariffs for Vernon Hills toy company
The Brief
A federal judge temporarily exempted a Vernon Hills-based toy company from Trump-era tariffs, siding with the company's lawsuit challenging the president's authority under the International Emergency Economic Powers Act.
The company, which owns Learning Resources and hand2mind, argued the tariffs threatened its survival and the jobs of about 500 employees in the U.S. and U.K.
The ruling includes a two-week pause for appeal; the judge said the company would suffer irreparable harm without the injunction.
VERNON HILLS, Ill. - A federal judge on Thursday ruled in favor of a Vernon Hills toy company, granting it a temporary reprieve from tariffs imposed by President Donald Trump, as a growing number of lawsuits continue to challenge the policy.
The decision means that, for now, the Trump Administration is not permitted to collect tariffs from the business, which makes some of its toys in the United States but manufactures the majority of its products overseas.
What we know
The family-owned educational toy company, which consists of several brands including Learning Resources and hand2mind, called Thursday's ruling a major victory—sharing that excessive tariffs have the potential to put them out of business.
With rising costs and ever-changing trade policies, small and mid-sized businesses like theirs are among those struggling to navigate the unpredictable nature of the economy.
"We just don't know what tomorrow is going to bring," explained Elana Ruffman, VP of Marketing & Product Development with hand2mind. "How do we know as a manufacturer where we should make our products?"
It's why the company is taking its concerns to court.
In early April, Learning Resources and hand2mind sued President Donald Trump, arguing that the International Emergency Economic Powers Act (IEEPA), which Trump invoked, does not authorize the president to impose tariffs.
"We are an importer, about 60 percent of our products are made in China," Ruffman said. "The challenge with the reciprocal tariff policy, it was essentially a ban, there was no way you can import at those prices."
A 33-page court opinion released Thursday sided with the company, stating that without preliminary injunction, the business "will sustain significant and unrecoverable losses." Furthermore, the federal judge also denied the Trump Administration's motion to transfer the lawsuit to the United States Court of International Trade (CIT).
The ruling included a two-week pause anticipating an appeal from the Trump administration, which has already been filed.
What they're saying
Based in Vernon Hills, the toy company employs about 500 people in the United States and 50 others in the United Kingdom. Specializing in educational toys and resources, its products are used in about half of U.S. school districts, according to Ruffman.
Ruffman, who is the fourth generation in her family to work at the company, shares that sweeping tariffs could be devastating to the business, but more importantly—to its employees.
"We want to protect all the employees that work for us so that was why we decided to bring the lawsuit. We are a family business, we've been around for over 100 years, and we take our commitment very seriously," Ruffman said. "There are 500 people who work for us and their families depend on us for their livelihood and that's something that we don't mess around with."
Ruffman adds that on a larger scale, rising prices and potential cutbacks caused by tariffs could limit children's access to educational toys worldwide.
What's next
Now, Ruffman says they will wait for the legal process to play out and tells FOX 32 Chicago she won't be surprised if the case makes it all the way to the U.S. Supreme Court.
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