Latest news with #hand2mind
Yahoo
3 days ago
- Business
- Yahoo
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. RELATED: Appeals court temporarily reinstates Trump tariffs
Yahoo
3 days ago
- Business
- Yahoo
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
Yahoo
3 days ago
- Business
- Yahoo
Second federal court blocks Trump's tariffs
A second federal court blocked the bulk of President Trump's tariffs on Thursday, ruling he cannot claim unilateral authority to impose them by declaring emergencies over trade deficits and fentanyl. The ruling from U.S District Judge Rudolph Contreras, an appointee of former President Obama who serves in the nation's capital, comes hours after the U.S. Court of International Trade similarly blocked a series of Trump's tariff announcements. The administration quickly appealed both rulings. Since February, Trump has attempted to impose tariffs by invoking the International Emergency Economic Powers Act of 1977 (IEEPA). The law authorizes the president to impose necessary economic sanctions during an emergency to combat an 'unusual and extraordinary threat,' but a series of businesses and plaintiffs have argued the law doesn't authorize tariffs. 'This case is not about tariffs qua tariffs,' Contreras wrote in his 33-page opinion. 'It is about whether IEEPA enables the President to unilaterally impose, revoke, pause, reinstate, and adjust tariffs to reorder the global economy,' he continued. 'The Court agrees with Plaintiffs that it does not.' The order blocks both Trump's April 2 'Liberation Day' announcement that imposed a baseline 10 percent tariff and steeper rates on dozens of U.S. trading partners as well as Trump's various tariffs on China. Trump initially announced a 10 percent tariff on Chinese goods in February before raising the rate in a series of subsequent announcements through April, at one point reaching 145 percent for some goods. The administration temporarily slashed the rate after trade talks in Geneva. Despite the courts indefinitely blocking those announcements, some of Trump's other tariffs remain in place, as they are rooted in other legal authorities. Those primarily concern specific products, like steel and automobiles. 'The courts should have no role here,' White House press secretary Karoline Leavitt said at a briefing Thursday moments after the ruling came down. 'There is a troubling and dangerous trend of unelected judges inserting themselves into the presidential decision-making process. America cannot function if President Trump, or any president for that matter, has their sensitive diplomatic or trade negotiations railroaded by activist judges.' Thursday's ruling came in response to a lawsuit filed by two Illinois-based small businesses, Learning Resources and hand2mind, that manufacture educational toys mostly in China and other foreign countries. Their case is one of a handful of legal challenges to Trump's tariffs making their way through the courts. Contreras noted his ruling would have 'virtually no effect on the government' because the U.S. Court of International Trade had blocked Trump's ability to impose tariffs under the IEEPA on Wednesday evening in a separate lawsuit. The Trump administration has attempted to move all the various cases to the trade court, but Contreras refused the request as part of Thursday's ruling, allowing it to proceed in Washington, D.C. It's a break from judges in Florida and Montana, who both agreed to the administration's request. A similar motion remains pending in a lawsuit brought by California Gov. Gavin Newsom (D), who filed his case in San Francisco. Updated: 2:29 p.m. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
USA Today
3 days ago
- Business
- USA Today
Second federal court blocks Trump tariffs, this time for Illinois toy importers
Second federal court blocks Trump tariffs, this time for Illinois toy importers A federal judge blocked Trump's tariffs for a pair of Illinois toy importers, the second ruling against the tariffs in as many days Show Caption Hide Caption Court blocks Trump's tariffs, saying they exceed legal authority A trade court blocked President Donald Trump's tariffs, saying they exceed his legal authority. 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 didn't grant Trump the authority to impose tariffs as he claimed. (This is a developing story. Check back for details.)
