Learning Resources Sues Trump Administration Over Tariffs, Case Before US Supreme Court
Learning Resources, a Vernon Hills, Illinois-based family-owned toy company with over 500 employees and about 2,000 products, is suing the Trump administration over tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The lawsuit, Learning Resource v Trump, challenges tariffs that cost the company approximately $2 million in 2024, with projected tariffs of around $14 million in 2025 and potential further increases in 2026.
The case is currently before the US Supreme Court, combined with concurrent suits from Democratic attorneys general and libertarians. The court has already heard arguments and is expected to issue a ruling in the near term. Chief Justice John Roberts noted during proceedings that the imposition of taxes is a core power of Congress, signaling skepticism toward broad presidential tariff authority.
Learning Resources highlighted difficulties accessing potential refunds since US tariffs are deposited into the treasury, complicating reimbursements if the court rules against the administration. To avoid tariffs, the company moved production of its BubblePlush product from China to India, but India’s tariffs unexpectedly rose from 25% to 50% while the product was in transit, adding about $50,000 in import costs.
The tariffs have significantly disrupted the company's supply chains and product development, with tariff changes occurring roughly every three days. As a result, Learning Resources has cut expenses, slowed hiring, and reduced planned new products. About one-third of the company's staff is now focused on supply-chain tasks.
The Woldenberg family runs the business, with Stephen Woldenberg serving as senior vice president of sales and Rick Woldenberg managing the company. They emphasize that their legal action aims to protect roughly 500 employees and their families rather than to pursue political goals.
