Rick Woldenberg, the owner of Learning Resources, a toy manufacturing company based in the Chicago area, believes that it is not in his nature to remain silent when facing significant challenges. In April 2023, shortly after the Trump administration implemented sweeping tariffs on what is referred to as Liberation Day, Woldenberg decided to take action. He filed a lawsuit against President Trump and his top advisers, claiming that the tariffs constituted an illegal power grab by the Executive Branch.
Woldenberg's 37-page complaint argues against the legality of these tariffs, and after a lower court sided with him in June, the Trump administration appealed the decision. On a recent Wednesday, the Supreme Court heard the case, which will determine the future of Trump's signature economic policy. "I just wasn't willing to be led to a slaughter by the politicians," Woldenberg explained in an interview with CBS Evening News anchor Maurice DuBois. "So we did what we're allowed to do, which is to push back."
Learning Resources is known for manufacturing a wide range of educational toys, with approximately 2,000 products primarily produced in Asia. Woldenberg's approach starkly contrasts with many business leaders who privately express concerns about the uncertainty caused by Trump's tariffs but choose to remain silent publicly or lobby behind closed doors. “I'm not a politician, and this is not a political movement,” Woldenberg asserted. “This is a lawsuit over the interpretation of a law.”
The Supreme Court is now tasked with determining whether the president possesses the legal authority to impose tariffs on foreign countries as a means to address national emergencies, such as the fentanyl crisis, illegal immigration, or persistent trade deficits—all reasons cited by Trump. If the Court upholds these tariffs, Trump has claimed it would ensure American prosperity. Conversely, if Woldenberg wins, the White House has warned of potential economic repercussions, including the need to reimburse billions to American businesses affected by the tariffs.
Treasury Secretary Scott Bessent indicated last month that the U.S. might need to refund approximately half of the more than $200 million in tariff revenue collected this year. Woldenberg estimates that about a third of his 500 employees have had to shift their roles to address the impacts of the tariffs. Learning Resources has already paid between $5 million and $10 million in tariffs this year alone. "I definitely want my money back," he stated emphatically. "The government has chosen to hit us with a massive tax."
Woldenberg has a history of standing up against government actions that threaten his business interests. In 2009, he contested the Obama administration's stricter lead-testing regulations for toys. Although he donated $7,000 to Kamala Harris's campaign for the 2024 election, Woldenberg insists that his decision to sue the president is not politically motivated, having previously contributed to both Democratic and Republican candidates.
On a recent Friday morning, employees at Learning Resources’ 356,000-square-foot warehouse north of Chicago were busy preparing shipments destined for major retailers like Walmart, as well as small toy stores nationwide. Woldenberg highlighted the unique advantages that factories in China and Vietnam offer, including labor for assembling popular products like the toddler cash register and sourcing materials for items like BubblePlush, a new children's yoga ball anticipated to be a hit this Christmas. He noted that shifting production to the U.S. would be unfeasible, stating, “We can't do it. And we don't see our competitors doing it.”
As businesses navigate these turbulent waters, many have resorted to reactive strategies to cope with the rapidly changing tariff landscape. For example, after Trump raised the tariff rate on China to 145%, Learning Resources shifted some production to India. However, when India’s tariff rate was subsequently raised to 50%, Woldenberg found himself racing to ship products to avoid additional penalties. "It was like a bat-outta-hell emergency," he recalled, describing the chaotic scramble to meet customs deadlines.
Alongside Woldenberg's lawsuit, the Supreme Court is also considering a similar case brought by five other small businesses and a coalition of Democratic state attorneys general. A federal appeals court previously ruled that many of the president's tariffs are illegal. This case marks the first instance in which the Supreme Court will directly address the legality of one of Trump's most significant policies during his second term. In the past, the high court has provided interim emergency rulings on several of the president's initiatives, including attempts to dismiss Federal Reserve commissioner Lisa Cook.
Woldenberg remains optimistic about the outcome, expressing hope that the Court will grant him relief. "We and the hundreds of thousands of other similarly situated businesses will get the unlawfully collected taxes rebated to us," he stated confidently.
