A small toy company from Illinois is taking on former President Donald Trump's sweeping "Liberation Day" tariffs in what could become a landmark Supreme Court case.
Learning Resources, an educational toy maker led by CEO Rick Woldenberg, argues that Trump's tariffs are illegal and are hurting small American businesses.
The case, "Learning Resources v. Trump," will be heard by the US Supreme Court on Wednesday.
The justices will also review two related cases brought by Democratic-led states and a nonprofit group called the Liberty Justice Center, which represents several small businesses including MicroKits and wine importer VOS Selections.
Woldenberg, whose mother founded Learning Resources in the Chicago suburbs, said he decided to sue after the tariffs made it harder for his company to survive.
"I'm not willing to allow politicians to destroy what we have built up over generations," he said.
Trump's "Liberation Day" tariffs, announced in April, added a baseline 10% tax on nearly all imports, with higher rates — up to 50% — on specific countries, US News reported.
The administration claimed the tariffs would strengthen US manufacturing, but small businesses like Learning Resources say the costs have been devastating.
The dispute centers on whether Trump legally used the International Emergency Economic Powers Act (IEEPA) to impose the tariffs.
The law, passed in 1977, was intended for national emergencies — not trade issues. Three lower courts have already ruled that Trump exceeded his authority, but his team appealed directly to the Supreme Court and asked for a quick ruling.
"A toy maker takes his case against Trump's tariffs to the Supreme Court" https://t.co/5WAVdtzcxn
— Scott Lincicome (@scottlincicome) November 2, 2025
"I'm not willing to allow politicians to destroy what we have built up over generations" ✊🇺🇸💯 pic.twitter.com/Ixcvaa3sx8
Trump's Tariffs Force US Toy Makers to Cut Back
For Learning Resources, which makes most of its toys in Asia, the tariffs have forced difficult choices.
According to Reuters, Woldenberg said the company canceled plans to expand its warehouse, stopped new hires, and cut spending on marketing and employee training.
"I predicted we'd be smaller and make less money — and both of those things are true," he said.
Other small business owners share his frustration. David Levi, founder of Virginia-based MicroKits, said Trump's tariffs on Chinese imports — some above 100% — forced him to slow production and reduce his only employee's hours.
"You're just trying to guess what happens next and can't plan ahead," Levi said.
Large US corporations have mostly avoided joining the lawsuits. Experts say that's because big companies have more flexibility — they can shift supply chains or lobby for exemptions — while small businesses have fewer options.
Woldenberg said taking the case to the Supreme Court was a costly but necessary move. "Hundreds of thousands of businesses are in the same position," he said. "But I may be the only one willing to fight this battle on my own."
Originally published on vcpost.com
