One of the plaintiffs in the Supreme Court case that overturned many of President Trump’s tariffs is Rick Woldenberg. He’s the owner of the Chicago-based small toy manufacturer, Learning Resources. Woldenberg joined Geoff Bennett to discuss the ruling and what comes next for his business.
Geoff Bennett:
And turning now to one of the plaintiffs from today’s case, that’s Rick Woldenberg, owner of the Chicago-based small toy manufacturer Learning Resources.
Welcome back to the “News Hour.” Thank you for having me.
Rick, last November you told us your tariff costs had risen sixfold, more than sixfold, in fact, in a single year. So what was your reaction when you heard the Supreme Court decision today?
Rick Woldenberg, CEO, Learning Resources:
Well, obviously, we were very gratified to have the support of the Supreme Court. We felt vindicated in our assertion that the tax that we were paying was unlawful.
I can also tell you that it was a demonstration of the rule of law in action. And so I was comforted by the fact that I felt that the court was impartial and applied the law as written. That’s important to everybody.
Geoff Bennett:
The tax, as you describe it, the added cost, how much of that did your company absorb and how much did you have to pass on to customers?
Rick Woldenberg:
Well, it’s an interesting question.
I took a look at it. And our tax rate, federal plus state, plus IEEPA tariffs, was in excess of 100 percent last year. And so you can’t stay in business if you make a dollar and you pay more than a dollar in taxes. You will eventually have no dollars. So we had to pass it on.
And that tells you exactly why other companies had to pass it on too. You can’t have a marginal tax rate that is greater than your earnings. So we passed on some of it. We passed on as little as we felt we could manage. And in heading into ’26, we already decided we were going to win the case. And so we decided to treat our financials as if we weren’t going to pay tariffs, and we didn’t raise our prices.
So we’re actively trying to average our price down to where we think it would have been.
Geoff Bennett:
The president today, in railing against the Supreme Court, announced a 10 percent global tariff. So, in practical terms, what actually changes for your business tomorrow?
Rick Woldenberg:
Well, at least our tax rate went down, because most companies — most countries were being taxed at 18, 19, or 20 percent. And when I say the countries were being taxed, I mean we were being taxed to the tune of 18 or 19 or 20 percent.
So now, at 10 percent, that’s about a reduction in half. It didn’t go to zero. And 122, Section 122 can only impose a tax for five months. So I guess we will see what happens after that.
Geoff Bennett:
As we were discussing earlier, the court in striking down these tariffs didn’t spell out what happens to the revenue already collected. What’s your hope and expectation?
Rick Woldenberg:
Well, they did say that the law does not provide for tariffs. So the tariffs were unlawful when imposed. That means that the government took money from us they had no right to take.
And just like paying too much in taxes, they have to give it back with interest. That’s what the law provides. So it was never anyone’s expectation, I don’t think, that the Supreme Court would fashion a remedy. They will send it down. But having — for the remedy to be created.
But they also said quite clearly these tariffs were collected unlawfully. That means they have to be returned.
Geoff Bennett:
And lastly, Rick, I’m not sure if you were watching the press conference with the president today, but he resorted to name-calling when talking about you and the other plaintiffs. I won’t repeat what he said, harsh language, choice words, to be sure.
I wonder if you have a response to that.
Rick Woldenberg:
Somebody told me he said I was good-looking. He didn’t say that?
(Laughter)
Rick Woldenberg:
I don’t think that these issues are solved by pointing fingers. And I have not allowed our case to become political. So I don’t have to take the position that we are against an individual like Mr. Trump.
We were against the misapplication of law, and that’s what we said. And so I’m not sure that any reply is necessary. We are companies located in Chicago. We make educational products that go into schools and homes. I don’t know why anyone would be angry at us.
Geoff Bennett:
Rick Woldenberg, owner of the small toy manufacturer Learning Resources, thanks again for joining us.
Rick Woldenberg:
Thank you.
