A federal judge in Washington, D.C., sided with a Chicago-area toy company on Thursday, blocking five executive orders signed by President Donald Trump that imposed tariffs on Chinese imports.

U.S. District Judge Rudolph Contreras determined the International Economic Emergency Economic Powers Act (IEEPA) does not authorize Trump to impose the tariffs in his executive orders.

Contreras granted a motion for a preliminary injunction, filed by the toy company, Learning Resources, Inc., which will be stayed for 14 days in case the administration decides to appeal the decision.

President Donald Trump defended his tariff policy in an interview with NBC News on Sunday, saying that he would reach out to CEOs like Jeff Bezos if he has disagreements over their response to tariffs or other issues.  (NBC News)

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Trump announced his “Liberation Day” reciprocal tariff plan on April 2, imposing a 10% baseline tariff on all countries.

In certain countries, hostile negotiations led to even higher levies, with taxes on Chinese imports reaching 145%.

Traders on the floor of the New York Stock Exchange (NYSE), March 28, in New York City. (Spencer Platt/Getty Images)

Rick Woldenberg, CEO of Learning Resources, said in April the third-generation family business that had been manufacturing in China for four decades would face an almost 98% increase in its tariff bill.

He said the $2.3 million the company paid in 2024 would jump to $100.2 million in 2025. 

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“I wish I had $100 million,” Woldenberg wrote in a statement. “Honest to God, no exaggeration: It feels like the end of days.”