Learning Resources, a toymaker based in Vernon Hills, is once again challenging the federal government’s global tariffs. Previously, the company successfully contested the Trump administration’s 2025 tariffs, securing a Supreme Court victory. The new lawsuit, filed Friday with the U.S. Court of International Trade, includes HMTX Industries, a flooring company from Connecticut, as a co-plaintiff. It addresses the recent tariffs ranging from 10% to 12.5% imposed on key trading partners due to alleged forced labor practices.
The Trump administration invoked Section 301 of the Trade Act of 1974. This section allows the president to impose tariffs on countries that engage in unfair trade practices. The Office of the United States Trade Representative highlighted forced labor concerns in the supply chains of top 60 trading partners, which account for 99.4% of U.S. imports. However, Elana Ruffman, Chief Marketing Officer at Learning Resources, argues that the issue is about increasing taxes.
Ruffman noted that the Trump administration attempted to impose a similar global tariff regime under different laws. The Friday lawsuit contends that this attempt, like previous ones, will not succeed. Ruffman criticized the administration for not providing concrete evidence of forced labor in the targeted economies.
In February, the Supreme Court ruled that about $160 billion in tariffs had been collected illegally, and the government was ordered to refund this amount to affected businesses. Learning Resources received $10 million from the $12 million they had incurred in additional tariff expenses. Economic studies show customers bore most of the tariff costs. In 2025, Midwest households faced an average $2,000 increase in living costs due to the tariffs. Illinois families saw annual expenses rise by $2,236, while Indiana and Michigan households saw even higher increases.
The tariffs reduced the Midwest economy’s size by $18 billion and cut manufacturing jobs by over 41,000, hitting low-income households hardest. Economist Frank Manzo confirmed that the 2025 trade war posed significant challenges to the economy, particularly in the Midwest.
Learning Resources, along with its sister company hand2mind, employs 500 people globally and features a vast operational site in Vernon Hills. Despite tariff challenges, the company maintained prices in 2026 and avoided layoffs, passing on the benefits of tariff rebates to customers.
The company is also expanding, constructing a new 700,000-square-foot facility in Vernon Hills, funded through an EDGE tax incentive agreement with Illinois. This plan secures 288 existing jobs and creates 37 new roles. The state incentivizes companies that promote job creation and investment through the Economic Development for a Growing Economy program. The new facility is targeted to open in 2028.