Family-Owned Toymaker Waiting on the Supreme Court

Summary

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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)

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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.

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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]

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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]

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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]

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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.

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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.

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Transcript

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[D]

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[E]

Massar and Tim Stanvak on Bloomberg Radio.

[D]

Well again seeing some tariff related stocks take a hit today. Mattel, Hasbro, Lululemon for example, all falling after the Supreme Court did not rule on challenges to President Donald Trump's tariffs. So we are waiting until at least next week to learn the fate of his signature economic policy. Rick Waldenberg is also waiting. He's a business owner who's challenging President Trump's tariffs at the Supreme Court. Rick is CEO of the family owned educational toy company's Learning Resources and hand to mind. Rick was profiled late last year in a must read story by Greg Storr, Bloomberg News Supreme Court reporter Rick joins us now from Chicago. Greg joins us too from our Washington D.C. bureau. Welcome to both of you. Rick, two young kids. I'm very familiar with the learning resources part of the business. My mother in law that's like her go to gift. I love it for our kids so we love it. I want you to start just with how have tariffs how tariffs have affected your business. Just walk US through what it's looked like over the last year.

[E]

Well, tariffs have had a dramatic effect on our business. The imposition of these taxes on our company with no advance warning and with seemingly no limit through our supply chain administration completely out the window, we had to rebuild our supply chain on the fly. It was a significant disruption in how we manufactured our product. And so we had an enormous diversion of labor in our office. Maybe up to 30% of our man hours were shifted towards surviving. That change also obviously created a huge cost, well in excess of $10 million in 2025, up from zero in the year. And so it affected our cash flow, it affected our costs. We had to raise our prices. And it's an economic depressant, A massive tax like that. It's like wearing ankle weights in a, in a sprint. You slow down. And so we're a little smaller as a result of this huge tax.

[F]

So, Greg Store, I want to bring you in. This is a great story as you, you do so well and it's, I feel like Bloomberg does. It reminds us that there are big stories, there are headlines, but there are people and companies being impacted and in this case a lot of small and mid sized companies. I think it's safe to say that Rick's story. Not unique.

[G]

It's not unique. And in fact it is the smaller companies that have launched this challenge. There are two different cases there before the Supreme Court and the other ones, also small businesses, actually smaller than Rick's. The bigger companies, while they have subsequently filed some lawsuits to try to get refunds in case the Supreme Court strikes down the tariffs, they didn't want to be out front in challenging these.

[D]

So, so Rick, come on in here because I asked this question earlier to Matt Boyle. He's got a great piece out along with Nancy Cook. It's the big take today. Everybody should read it. It's the CEO's playbook to President Trump. And I asked him, you know, why is it the small companies, you know, and Carol made the point earlier, the big companies are not speaking out against this administration. Matt made the point to us. There's no upside for them doing that. Why did you choose to speak out? Why are you speaking publicly about this? Why did you file this lawsuit? It doesn't, yes, there's certainly upside, but there's also a lot for you to lose. Like we've seen the way that, that this administration has been punitive in some cases.

[E]

Well, I think that the things that I was afraid of losing were the, the, the relationship I have with our Customers, the dependence that are our employees and their families have on our company. Ours is a family business. I'm third generation. My kids are fourth generation. You have a very strong sense of how the health of your business affects the community that you live in. And so 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. And I wasn't going to let a politician ruin what we built up over a hundred years. We're also mission driven business. There's lots of families like yours who use our products and depend on them to help educate their children. And that means a whole lot to us. So we felt like we had a lot of reason to stand up. And I was more concerned about not doing something than doing something.

[D]

You know, the president, Rick, yesterday in Detroit said, quote, to be anti tariff is to be pro Chinese. And the tariff challengers at the Supreme Court are China centric. And he alluded to the idea of people who are challenging tariffs as anti American. He did that today. How do you respond to that?

[E]

You know, one of the things I've done in this lawsuit is I've tried not to go tit for tat and to point fingers in saying that Mr. Trump points fingers at me. But I'm not sure that I make my point more strongly by engaging in finger pointing back. I would just simply say that Mr. Trump has no legal right to have imposed this tax on us. It's hurt our business and we've asked the court to adjudicate that he had no right to do this. And no American wants to or feels exposed to the risk of paying a tax that's not legal. There are means for him to put taxes on us. He has to go through the House. That's what James Madison wants and that's what we need to do. So he can't do it. 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. That's our orientation.

[F]

Yeah. What a story. A stark story. And Greg, you know, I look at your story on this and you say, and you remind us that the president has wielded tariffs to try to get Canada and Mexico to crack down on illegal immigration, Brazil to stop to drop the prosecution of ex President Bolsonaro and India to stop buying Russian oil. He has used this tool a lot in this administration in this first year. Come on in on the conversation and, you know, you brought Rick to us. I'd love for you to ask Rick a question as well.

[G]

Well, Carol, one thing you're pointing out there is that the tariffs that he has imposed under the law that's at issue at the Supreme Court, known as ia there are other tariff authorities that he's used that are not before the Supreme Court. And so actually, my question for Rick is, you know, the president has said that even if he loses the Supreme Court case, he's going to turn to these other authorities and try to replicate the tariffs. And I'm actually really interested in terms of your business. How concerned are you that even if you win at the Supreme Court, you're just going to see a whole different variety of tariffs, maybe ones that force you to kind of shift your business plans again and, and shift where you're manufacturing some of your products.

[E]

Of course, that's a risk. And Mr. Trump has a track record of changing the rules on a very rapid cadence, which makes it hard for us to run our business. It's a little difficult to respond to, like what he might do or what he might not do. All the other provisions in the law that give him the right to impose tariffs come with a lot of strings attached. So it requires a lot of fact finding hearings. It's a slow process. He can't do it by fiat. He can't do it by true social tweet. So I think it's better to wait and see, like, what he actually does. I'm not aware of a legal mechanism where Mr. Trump can be a taxing body. He's not allowed to do that. The Constitution is quite clear on that. So as much as he wants to do it without going through Congress, he can't. The law says he cannot. And so I don't want to overreact to threats made on tv. I think the Constitution provides the answer to that. Ultimately, at the end of the day, it's going to be a lot harder for him to build a tariff structure going around Congress. The law doesn't provide for it. And so we'll see what he does, and when he does it will figure out how to respond.

[D]

Rick, the story that Greg wrote back in November talks a little bit about in the beginning of this kind of game of whack, a mole of moving production from one country to another, only to find the tariffs have been imposed in this country also. That was China to India and the like. At the end of the day, the president wants, wants tariffs because he wants this stuff made in the US So Is there a way that you foresee in the future you could ever just make all the products or a good portion of the products that are made overseas right now you could make them in the U.S.

[E]

Certainly no. And I've answered the questions many times. The answer is still no. And there's no evidence in the marketplace that anyone really disagrees with me. I think unfortunately, the way this is being dealt with is that our industry and companies like ours are considered a sacrificeable rounding error. They don't really have any idea what we do or how we do it. They want cars made here, they want cell phones made here, they want chips made here. And so they've come up with one rule. That's what their intent is. They want to bring back pharmaceuticals. And like, if something bad happens to us, it's not really their problem. 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. We're rounding error. And I just can't look at the people who work here, the people who use our products and say I think you're a rounding error. I don't.

[D]

Yeah.

[E]

And I think that we create great jobs. Greg has been through our facilities. He can tell you that, like we are a massive consumer and user of technology. User of technology. I think that our businesses and the way we run our business is an exemplar to other companies. We are what you want here. We just don't make a high tech product.

[F]

Yeah. You know, Greg, I'm not sure I.

[E]

Should apologize for that.

[F]

Greg, I think Rick makes a really good point. We talk so much about small and mid sized businesses being the backbone of the US Economy and putting American workers to work. And he is certainly an example of that. Greg, 30 seconds left though. We're now focusing on next week. Third times maybe the charm in terms of whether we get the Supreme Court to rule. What should we be watching out for and are we likely to get it and just quickly?

[G]

Well, we don't know even know that we're having opinions at all next week. We'll probably find that out on Friday. If we don't get the tariff opinion next week, the court's not goes on a four week recess. They're not scheduled to take the bench again until February 20th and normally that's how they release their opinions. So if we don't get it next week, we could be in for a fairly long wait.

[F]

Are you surprised? It's taking so long. Just 10 more seconds.

[G]

You know, I'm not sure I've been saying I still stand with this. I'm not surprised either way. The court has tried to expedite it, but. But this is a big case. It's going to take a while.

[D]

All right.

[F]

So appreciate it. Great story as always. Greg Storr, Bloomberg News Supreme Court Reporter and Rick Waldenberg. He is CEO of Learning Resources and hand to mind, a favorite of 10, it turns out.

[H]

I'm June Grosso, inviting you to join me for the Bloomberg Law Podcast. Every weekday we help you make sense of the legal stories that shape the nation and the world. Listen for complete analysis of the biggest court cases, the latest actions from Congress and regulators, and the legal moves driving the markets from corporate law to constitutional law and from state courts to the Supreme Court. At Bloomberg Law, we go beyond the day's headlines. We speak with top attorneys, judges, scholars and policy experts to break down what the rulings really mean. We do this every weekday, then bring you the best conversations in our daily podcast. Search for Bloomberg Law on YouTube, Apple, Spotify or anywhere else you listen. On the east coast, listen as you start your day and on the west coast coast, catch up in the evening. That's the Bloomberg Law Podcast with me, June Grosso. Subscribe today wherever you get your podcasts.