Toy Company CEO Sues Trump Administration, Citing Tariffs as Economic Threat

Rick Woldenberg, CEO of Learning Resources, a family-owned educational toy company based in Vernon Hills, Illinois, has filed a lawsuit against President Donald Trump and members of his administration, challenging the legality of tariffs imposed during Trump’s time in office.

Woldenberg argues that the tariffs are not only detrimental to his own business, which employs 500 workers, but also harmful to the broader US economy.

Learning Resources, known for producing thousands of learning-based toys such as Spike the Fine Motor Hedgehog and the Pretend & Play Calculator Cash Register, imports about 60% of its products from China. Under the Trump administration’s sweeping tariff policy, the company’s annual import duties have surged from $2.3 million to a projected $100 million — a 4,000% increase.

Describing the economic situation as “catastrophic,” Woldenberg claims the tariffs have led to a projected 25% drop in sales, reversing previous expectations of 8% growth.

“Forces have been unleashed in the economy — the world economy as well as the US economy — that will have consequences that will be irreparable,” he said.

The lawsuit, filed in US District Court in Washington, DC, contends that the president exceeded his constitutional authority by unilaterally imposing the tariffs without Congressional approval, an action the suit describes as historically the jurisdiction of Congress.

As a response to the tariffs, Woldenberg has been working to shift manufacturing from China to other countries such as India and Vietnam. Despite investing millions in the effort, only 16% of production has been successfully relocated. He also explored US-based manufacturing options, but cited lack of capacity and prohibitive costs as major barriers.

“We can’t even find somebody to make six or 10 products,” he said.

While the Trump administration has defended the tariffs as a way to encourage domestic manufacturing and reduce dependency on foreign supply chains, critics, including economists and state officials, argue that the strategy has increased inflation and hurt American businesses and consumers alike. Woldenberg noted that large corporations like Apple may have the resources to adapt, but smaller companies with diverse product lines and limited capital face steeper challenges.

Woldenberg’s lawsuit comes as part of a growing wave of legal opposition to the Trump-era tariffs. A coalition of 12 states — including New York, Illinois, and Oregon — also filed a lawsuit seeking to block the administration from enforcing what they claim are unlawful import duties. These states argue that the tariffs represent an unconstitutional overreach of executive power.

“This is not just about one company — it’s about the legal structure of how trade policy is enacted,” said Woldenberg.

He emphasized his commitment to his employees, referencing the company’s success in avoiding layoffs during the pandemic as a guiding principle through the current economic challenges.

The White House has not responded to requests for comment on the suit. However, a spokesperson criticized the growing legal actions as politically motivated, asserting that the administration had acted within its authority to address trade imbalances and national security concerns.

As the legal battles unfold, Woldenberg is hopeful that the courts will rein in what he views as an unsustainable and damaging policy.

“They should go back to the way things were on January 19th and figure out another plan. This one is not working,” he said.

Axios, the New York Times, and CBS News contributed to this report.