How a CEO’s Supreme Court Challenge to Trump Could Spark Massive Tariff Refunds for Businesses

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How a CEO’s Supreme Court Challenge to Trump Could Spark Massive Tariff Refunds for Businesses

Rick Woldenberg, who runs a toy business called Learning Resources near Chicago, is making waves. After the Trump administration imposed significant tariffs, he decided to take action. Last April, Woldenberg filed a lawsuit, claiming these tariffs were an overreach of presidential power.

In June, a lower court sided with him, but the Trump administration appealed. Recently, the Supreme Court heard arguments in this important case. Woldenberg stated, “I wasn’t going to let politicians lead me to failure. We pushed back legally.”

Woldenberg’s company produces most of its 2,000 educational toys in Asia. Many business leaders have quietly complained about the uncertainty the tariffs create, yet Woldenberg chose to speak out. “This is not a political issue; it’s about following the law,” he emphasized.

The Supreme Court’s decision could have major implications. If they back the tariffs, Trump argues it will lead to economic prosperity. But if Woldenberg wins, the government might owe billions back to companies like his. Treasury Secretary Scott Bessent mentioned that the U.S. could need to refund about half of the more than $200 million collected in tariffs this year.

Woldenberg pointed out that around a third of his 500 employees have altered their roles due to the tariffs. His company has faced tariff bills totaling between $5 million and $10 million this year. “I want my money back,” he said. He believes the government is essentially taxing his business heavily.

This isn’t the first time Woldenberg has challenged government policies. In 2009, he fought against stricter lead-testing rules for toys. Although he donated to Kamala Harris’s campaign in 2024, he insists his lawsuit is non-political, having previously supported both parties.

At his warehouse, workers prepare toys for shipment to retailers like Walmart as well as small local stores. Woldenberg highlighted that factories in China and Vietnam offer crucial benefits in terms of labor and materials, making it nearly impossible to move production to the U.S. “We can’t do it, and neither can our competitors.”

Over the years, Woldenberg has had to adapt rapidly to tariff changes. For instance, after tariffs on China soared, he shifted some production to India, only for those tariffs to rise as well. “It felt like a mad rush,” he recalled. “We had a tight deadline, and a late shipment cost us $50,000.”

Besides Woldenberg’s case, the Supreme Court is also reviewing a similar situation brought by other small businesses and Democratic state attorneys general, focusing on the legality of the tariffs. This case stands out as the Court’s first direct examination of a significant Trump policy.

Woldenberg remains optimistic about the outcome. He believes all the businesses affected by these tariffs will eventually see their money returned.



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Supreme Court of the United States, Tariffs