Learning Resources Challenges New Tariffs in Court

Learning Resources, a toymaker in Vernon Hills, has once again taken legal action against the federal government, challenging recent global tariffs. The lawsuit, filed alongside HMTX Industries, a flooring company based in Connecticut, contests the 10% to 12.5% tariffs applied by the Trump administration. These tariffs target top trading partners due to alleged forced labor practices.

The Trump administration imposed these tariffs under Section 301 of the Trade Act of 1974. This section allows the president to impose tariffs on nations involved in unfair trade practices. The Office of the United States Trade Representative claims forced labor is present in supply chains among the top 60 trade partners, which account for 99.4% of U.S. imports.

Elana Ruffman, Chief Marketing Officer of Learning Resources, criticized the tariffs. “It’s not about forced labor; it’s about raising taxes,” she stated. Learning Resources had previously challenged tariffs in 2025, winning a Supreme Court case that secured substantial refunds for American companies.

The new tariffs replace previous 10% global tariffs implemented by Trump in February. The Supreme Court had struck down earlier tariffs imposed under the International Emergency Economic Powers Act, deeming them beyond presidential authority without Congress’s approval. The lawsuit on Friday argues that the federal government is trying to reintroduce a similar tariff regime under different laws but contends that their latest attempt will not succeed.

“They use vague language and examples rather than concrete specifics,” Ruffman explained. “It seems like a guise to raise funds.” Earlier this year, the Supreme Court ordered a refund of approximately $160 billion in tariff revenue collected illegally from businesses. Learning Resources recovered about $10 million of the $12 million spent due to these tariffs.

Studies have shown that consumers bore most tariff costs, with Midwest states like Illinois feeling the impact most severely. Research from the Midwest Economic Policy Institute and the University of Illinois revealed that such tariffs increased costs for an average Midwest household by over $2,000 in 2025. Illinois households faced an average increase of $2,236, Indiana $2,586, and Michigan $3,158.

The trade war significantly affected the Midwest economy, reducing manufacturing jobs by more than 41,000. Frank Manzo, co-author of the study, noted, “Midwest households suffered more than those nationwide.”

Learning Resources, along with hand2mind, operates with 500 employees globally and manages a large warehouse in Vernon Hills. Despite increased tariffs, the company maintained prices and absorbed costs through marketing budget cuts without layoffs. Ruffman emphasized that keeping prices stable in 2026 helped return funds from previously illegal tariffs to consumers.

The company plans expansion with a new 700,000 square foot distribution center in Vernon Hills for hand2mind. This project includes hiring 37 new full-time positions and retaining 288 jobs in Illinois. Scheduled to open in 2028, the expansion takes advantage of the EDGE program, which offers tax incentives to companies creating jobs and investments in Illinois.