Learning Resources, a US educational toy manufacturer employing over 500 people, is suing the Trump administration over tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The company argues the tariffs are illegal and has joined a case before the Supreme Court that could determine the fate of billions of dollars in trade levies.
The family-owned business, which produces around 2,000 products including children's binoculars and learning games, spent about $2 million on tariffs in 2024. This year, it projects paying $14 million solely from the new IEEPA tariffs, with potential increases in 2026. Stephen Woldenberg, senior vice-president of sales, said the risk of inaction outweighed the risk of litigation.
Three lawsuits—from Learning Resources, Democratic attorneys general, and libertarian groups—have been combined for the Supreme Court case, Learning Resource v Trump. The company's filing states that while it survived the Great Recession and Covid-19, the president's unilateral tariffs now pose the greatest challenge to its existence.
Large US retailers have largely avoided legal action, except Costco, which filed a similar lawsuit this month seeking refunds for tariffs paid. Learning Resources also seeks repayment, arguing that if the taxes were collected illegally, they should be reimbursed. The Trump administration has reportedly moved to deposit tariff payments quickly to complicate potential refunds.
During November's oral arguments, Chief Justice John Roberts noted that imposing taxes on Americans falls under Congress's power, not the president's. The Supreme Court is expected to rule swiftly, though a decision may not come until next year. Meanwhile, tariffs are affecting product development at Learning Resources, limiting new releases due to high and unpredictable costs.
Woldenberg emphasised the lawsuit is not political but a legal challenge to the administration's authority. “We wanted to take action because we didn’t believe that what the administration did was legal,” he said.
