WASHINGTON — The U.S. Court of Appeals for the Federal Circuit on Thursday stayed an injunction by the U.S. Court of International Trade, delaying the trade court’s order blocking the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry.
As XBIZ reported in April, the Trump administration’s sharp escalation of import taxes, especially on goods from China, has had strong negative effects on the sex toy business.
On Wednesday, the U.S. Court of International Trade ruled that President Trump exceeded his authority by imposing the broad “Liberation Day” tariff regime.
“The challenged Tariff Orders will be vacated and their operation permanently enjoined,” the ruling concludes.
The administration appealed to the U.S. Court of Appeals for the Federal Circuit, which on Thursday granted a temporary stay of the trade court’s decision.
In April, retailers told XBIZ they felt great uncertainty and were rushing to stockpile inventory before skyrocketing costs associated with the tariffs hit home.
Sexual wellness brand Dame responded by instituting a “Trump tariff surcharge” on its products, later lifted when a trade deal moderated the tariffs’ impact somewhat.
The tariffs’ effects on the pleasure industry have also attracted mainstream media attention.
With the status of the tariffs in doubt, some adult brands and retailers are taking a “wait and see” approach. A spokesperson for Icon Brands told XBIZ, “I think we’re just in the first or second inning of this tariff battle, so we’ll hold in place until or unless we see the tariffs permanently disallowed.”
The plaintiffs in the case — a group of businesses and U.S. states — now have until June 5 to respond to the Trump administration's latest motion.
The case is widely expected ultimately to end up in the hands of the Supreme Court.
