Learning Resources, a toy manufacturer based in Vernon Hills, has filed a lawsuit against the federal government regarding recent tariffs. Partnering with HMTX Industries, a Connecticut flooring company, the case challenges the 10% to 12.5% tariffs imposed by former President Trump’s administration. These tariffs target trading partners accused of forced labor practices.
Invoking Section 301 of the Trade Act of 1974, the president can levy tariffs on unfair trade practices. The U.S. Trade Representative’s Office cited forced labor in supply chains among the top 60 trade partners, covering 99.4% of U.S. imports. However, Elana Ruffman of Learning Resources argues that the issue is more about tax increases than forced labor.
“It’s not really about forced labor; it’s about raising taxes,”
Learning Resources previously challenged similar tariffs in 2025, leading to a Supreme Court decision that refunded billions to U.S. companies. The new tariffs replace temporary 10% ones bypassed by the Supreme Court after ruling that they exceeded presidential authority without Congress.
The lawsuit accuses the administration of rebuilding a similar tariff regime. Ruffman criticizes the lack of concrete proof of forced labor in the targeted economies.
“They use very fuzzy language and fuzzy examples, not concrete specifics,”
February’s Supreme Court ruling led to a $160 billion refund on illegal tariffs, benefiting businesses. Learning Resources has reclaimed $10 million of its $12 million extra tariff costs. Economic studies reveal these tariffs mostly burdened consumers, particularly those in the Midwest.
According to the Midwest Economic Policy Institute, tariffs raised household costs significantly in states like Illinois, Indiana, and Michigan. These tariffs not only affected consumer expenses but also shrank the regional economy by $18 billion and impacted manufacturing jobs.
“The data confirms the trade war launched in 2025 has been a substantial headwind for the economy,”
Learning Resources and hand2mind employ 500 people worldwide and operate a large warehouse in Vernon Hills. Despite increased costs, the company avoided layoffs and maintained prices in 2026, offsetting tariff costs with previous refunds.
Looking ahead, Learning Resources plans to expand by opening a new distribution center. Through an EDGE tax incentive agreement, the company has committed to creating 37 new jobs while maintaining 288 existing positions. This new facility is set to open in 2028 and further promote economic growth.