Learning Resources Scores Court Victory Against Trump Tariffs as Appeals Court Halts Prior Tariff Ruling

The Trump Administration faced its second loss in less than 24 hours regarding its controversial trade policies.

U.S District Judge Rudolph Contreras ordered the Administration to halt the collection of tariffs on goods imported by Vernon Hills, Illinois-based Learning Resources and hand2mind, sister companies to Educational Insights. Like yesterday’s ruling by a trio of judges from the U.S. International Court of Trade, this one declares that President Donald J. Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by issuing sweeping tariffs covering imported goods.

In a 33-page ruling, Judge Contreras denied the White House’s motion for a venue change — to the Court of Trade — while issuing a preliminary injunction on behalf of the plaintiffs.

“This case is not about tariffs qua tariffs. It is about whether IEEPA enables the President to unilaterally impose, revoke, pause, reinstate, and adjust tariffs to reorder the global economy. The Court agrees with Plaintiffs that it does not,” Contreras wrote.

While Judge Contreras stopped short of a nationwide ruling, opting only to rule in favor of Learning Resources and hand2mind while allowing 14 days for the defendants — the Trump Administration — to appeal, legal analysts and pundits believe this paves the way for similar rulings in other cases challenging the President’s power to induce tariffs.

The White House quickly fired back with an appeal as Press Secretary Karoline Leavitt said the Administration “faced another example of judicial overreach.” In today’s press briefing, the Secretary called out the judges who issued this week’s rulings.

“These judges are threatening to undermine the credibility of the United States on the world stage. The Administration has already filed an emergency motion for a stay pending appeal and an immediate administrative stay to strike down this egregious decision. But ultimately, the Supreme Court must put an end to this,” Leavitt said.

This afternoon, a Federal Appeals Court granted the Administration a temporary stay on yesterday’s rulings, adding to the confusion over when the tariffs, including hefty taxes on goods from China, Canada, and Mexico, may finally be removed.

This is an evolving story. Click here for the latest updates on tariffs and the toy industry…