Bloomberg Businessweek

Episode Summary: Family-Owned Toymaker Waiting on the Supreme Court

Date: January 16, 2026
Hosts: Carol Massar and Tim Stenovec
Guests: Rick Waldenberg (CEO, Learning Resources & Hand2Mind), Greg Storr (Supreme Court Reporter, Bloomberg News)

Overview

This episode explores the real-world impact of U.S. tariffs on small and mid-sized businesses through the story of Rick Waldenberg, CEO of family-owned educational toymaker Learning Resources and Hand2Mind. With the Supreme Court yet to rule on challenges to President Trump’s signature tariffs, Rick and similar business owners are caught in limbo—facing higher costs, disrupted supply chains, and fundamental questions about policymaking and the future of American manufacturing. Bloomberg’s Supreme Court reporter Greg Storr provides legal and political context, highlighting why small companies (rather than major corporations) have stepped up to challenge these government actions.

Key Discussion Points & Insights

How U.S. Tariffs Disrupted a Family Toy Business

[02:39] Rick Waldenberg describes the toll:

• Sudden, unannounced tariffs significantly disrupted manufacturing operations.
• Up to 30% of company man-hours reallocated to crisis management.
• Over $10 million in additional costs in 2025 alone—passed on to customers as price hikes.
• Tariffs likened to a “massive tax”—a direct economic depressant stifling growth.

“It’s like wearing ankle weights in a sprint. You slow down. And so we’re a little smaller as a result of this huge tax.”
— Rick Waldenberg [03:26]

Why Small Businesses Lead the Legal Fight

[04:08] Greg Storr provides context:

• Small companies, not big corporations, initiated lawsuits challenging Trump’s tariffs.
• Large firms have only sought reimbursement if the tariffs are struck down, avoiding direct challenges.

“It is the smaller companies that have launched this challenge … The bigger companies … didn’t want to be out front in challenging these.”
— Greg Storr [04:13]

The Personal Stakes of Speaking Out

[05:11] Rick explains his motivations:

• As a third-generation business owner, feels responsibility to employees and local community.
• Values the company mission—providing educational products for children and families.
• Chose to act out of fear of not doing something.

“We just couldn't walk away from those folks. And I'm very American in my outlook. I want to take control of what's happening to us. I wasn’t going to let a politician ruin what we built up over a hundred years.”
— Rick Waldenberg [05:19]

Responding to Politicized Accusations

[06:14] Rick addresses President Trump’s rhetoric:

• Trump claims anti-tariff advocates are “pro-Chinese” or anti-American.
• Rick opts not to trade barbs, focusing instead on legal and constitutional arguments.
• Stresses the company is “child-centric,” not “China-centric.”

“No American wants to or feels exposed to the risk of paying a tax that's not legal ... He has no idea if we're China centric or not. I would tell you we're child centric and we're trying to help children get a great start in life.”
— Rick Waldenberg [06:35]

Legal Uncertainty & Ongoing Risks

[08:05] Greg presses on what happens if the Supreme Court strikes down the tariffs:

• Trump may use other authorities to reimpose tariffs, but those require procedural hurdles and are slower.
• Rick remains wary but reiterates: the Constitution places limits on the president’s powers.

“All the other provisions in the law that give him the right to impose tariffs come with a lot of strings attached ... He can’t do it by fiat ... As much as he wants to do it without going through Congress, he can’t. The law says he cannot.”
— Rick Waldenberg [08:53]

Relocating Manufacturing: Why Not “Make It In America”?

[10:08] Hosts ask if domestic production is feasible:

• Rick gives a firm “no,” explaining that industry realities make U.S. manufacturing for their products unviable.
• Suggests policymakers view companies like his as “sacrificeable rounding error[s].”

“Unfortunately ... companies like ours are considered a sacrificeable rounding error ... We don’t move the needle economically. And so they don’t care. And I don’t think they care about our employees and I don’t think they care about your families who use our products.”
— Rick Waldenberg [10:51]

“We are what you want here. We just don’t make a high tech product.”
— Rick Waldenberg [11:48]

Notable Quotes

• “It’s like wearing ankle weights in a sprint. You slow down.”
  Rick Waldenberg, on the impact of tariffs [03:26]

• “It is the smaller companies that have launched this challenge … the bigger companies … didn’t want to be out front in challenging these.”
  Greg Storr, on who leads the legal fight [04:13]

• “We just couldn't walk away from those folks. And I'm very American in my outlook. I want to take control of what's happening to us.”
  Rick Waldenberg, on why he challenged the tariffs [05:19]

• “No American wants … to pay a tax that’s not legal ... I would tell you we’re child centric and we’re trying to help children get a great start in life.”
  Rick Waldenberg, countering rhetoric about being 'China centric' [06:35]

• “As much as he [Trump] wants to do it without going through Congress, he can’t. The law says he cannot.”
  Rick Waldenberg, on limits of presidential authority [08:53]

• “We are what you want here. We just don’t make a high tech product.”
  Rick Waldenberg [11:48]

Upcoming Supreme Court Decision: What to Watch

[12:30] Greg Storr’s final word:

• Still waiting for the Supreme Court’s decision; could be delayed by a four-week recess.

“If we don’t get the tariff opinion next week, the court ... [is] not scheduled to take the bench again until February 20th … we could be in for a fairly long wait.”
— Greg Storr [12:36]

Memorable Moments & Timestamps

• [02:39] Rick details the operational chaos caused by tariffs.
• [05:11] Rick’s emotional explanation for standing up despite risks.
• [06:14] Host brings up Trump’s rhetoric, Rick’s measured response.
• [08:05] Legal back-and-forth about the president’s powers.
• [10:08] “Sacrificeable rounding error”—the overlooked real-world impact on small businesses.
• [12:30] Supreme Court timing and what to expect next.

Tone & Takeaway

The episode strikes a tone of thoughtful frustration: highlighting the little-discussed human and business costs of trade policy. Rick Waldenberg’s story brings the impact into sharp relief and questions how policy priorities overlook small business realities. The Supreme Court’s pending decision looms large, offering uncertain hope in a complicated legal and political environment.