Law & Courts

Educational Toymakers Sued Over Trump Tariffs. How Is the Supreme Court Leaning?

By Mark Walsh — November 05, 2025 3 min read
People arrive to attend oral arguments at the Supreme Court on Wednesday, Nov. 5, 2025, in Washington.
  • Save to favorites
  • Print

A majority of U.S. Supreme Court justices voiced skepticism on Wednesday about the legality of President Donald Trump’s sweeping tariffs, which are being challenged by two educational toy companies and others who say the measures will raise costs for school districts.

During more than two hours of arguments in Learning Resources Inc. v. Trump, Chief Justice John G. Roberts Jr. said the tariffs were an “imposition of taxes on Americans, and that has always been the core power of Congress.”

Justice Neil M. Gorsuch warned of “a one-way ratchet toward the gradual but continual accretion of power in the executive branch and away from the people’s elected representatives” in Congress.

Justice Amy Coney Barrett asked tough questions of both sides, while more liberal members Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson also appeared sympathetic to the challengers.

The lead challengers to Trump’s tariffs are Learning Resources Inc. and hand2mind Inc., both based in Vernon Hills, Ill., a Chicago suburb. They sell hands-on learning toys focused on STEM learning, computer coding, social emotional learning, reading, and mathematics.

Most of their products were manufactured in China until the president imposed some of his highest tariffs on that country. The companies have shifted some of their production to Vietnam and India, although those countries have also seen higher Trump tariffs.

“Mr. Trump … raised the tax rate on our company to the point it was asphyxiating,” Rick Woldenberg, the CEO of both education companies, told Education Week recently. Woldenberg and several of his adult children who work for the companies were in attendance at court.

Trump has increased baseline and nation-specific tariffs on imported goods based on two conditions he has declared “emergencies.”

One involves the flow of fentanyl and other lethal opioids into the United States from countries such as Canada, Mexico, and China. Portions of the increased tariffs on those nations are meant to pressure them to better combat the problem.

The other emergency cited by the president is the existence of longstanding trade imbalances between the United States and many of its trading partners.

“President Trump has declared that these emergencies are country-killing and not sustainable, that they threaten the bedrock of our national and economic security, and that fixing them will make America strong, financially viable, and a respected country again,” U.S. Solicitor General D. John Sauer told the justices during the Nov. 5 arguments.

Argument at times a civics lesson

Woldenberg and other challengers argue that Trump’s use of a 1977 federal law, the International Emergency Economic Powers Act (IEEPA), exceeds his powers because the statute does not mention tariffs.

“Tariffs are taxes,” Neal K. Katyal, a Washington lawyer representing small-business owners challenging the tariff policies. “They take money from Americans’ pockets and deposit them in the U.S. Treasury. Our founders gave that taxing power to Congress alone. Yet, here, the president bypassed Congress and imposed one of the largest tax increases in our lifetimes.”

Katyal and a lawyer representing a group of 12 states, also challenging the tariffs, faced pushback from conservative Justices Clarence Thomas, Samuel A. Alito Jr., and Brett M. Kavanaugh.

“I know you dispute the fact that this is a real emergency,” Alito told Katyal. “Maybe it’s not. But isn’t it the very nature of an emergency provision that it’s going to be more open-ended?”

Kavanaugh expressed concern that restricting the president’s ability to impose tariffs would take away from his “suite of tools” to deal with economic emergencies.

At times, though, the argument sounded like a civics lesson dealing with the underpinnings of the American Revolution and the constitutional separation of powers.

“Tariffs are constitutionally special because our founders feared revenue-raising measures, unlike embargoes on foreign countries’ exports,” Katyal said.

“You know, there was no Boston embargo party, but there was certainly a Boston Tea Party,” he said.

Gorsuch said the key context here was “the constitutional assignment of the taxing power to Congress, the power to reach into the pockets of the American people is just different, and it’s been different since the founding.”

A decision in the case is expected by next June.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, and responsible adoption.
Content provided by Lightspeed Systems
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Two Jobs, One Classroom: Strengthening Decoding While Teaching Grade-Level Text
Discover practical, research-informed practices that drive real reading growth without sacrificing grade-level learning.
Content provided by EPS Learning
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts California Sues Ed. Dept. in Clash Over Gender Disclosures to Parents
California challenges U.S. Department of Education findings on state policies over gender disclosure.
4 min read
California Attorney General Rob Bonta speaks to reporters as Arizona Attorney General Kris Mayes, left, and Oregon Attorney General Dan Rayfield, right, listen outside the Supreme Court on Wednesday, Nov. 5, 2025, in Washington. (AP Photo/Mark Schiefelbein)
California Attorney General Rob Bonta speaks to reporters outside the U.S. Supreme Court in Washington on Nov. 5, 2025, with Arizona Attorney General Kris Mayes and Oregon Attorney General Dan Rayfield behind him. Bonta this week sued the U.S. Department of Education, asking a court to block the agency's finding that the state is violating FERPA by <ins data-user-label="Matt Stone" data-time="02/13/2026 4:22:45 PM" data-user-id="00000185-c5a3-d6ff-a38d-d7a32f6d0001" data-target-id="">not requiring schools to disclose</ins> students’ gender transitions <ins data-user-label="Matt Stone" data-time="02/13/2026 4:22:45 PM" data-user-id="00000185-c5a3-d6ff-a38d-d7a32f6d0001" data-target-id="">to</ins> parents.
Mark Schiefelbein/AP
Law & Courts Oklahoma Board Rejects Jewish Charter as Supreme Court Fight Looms
Oklahoma's charter school board rejected the Jewish school as members said their hands were tied.
4 min read
Ben Gamla Charter Schools founder and former U.S. Rep. Peter Deutsch, right, speaks with Brett Farley, executive director of the Catholic Conference of Oklahoma, left, before a Jan. 12 meeting of the Statewide Charter School Board in Oklahoma City. Both are founding board members of an Oklahoma Jewish Charter School.
Ben Gamla Charter Schools founder and former U.S. Rep. Peter Deutsch, right, speaks with Brett Farley, executive director of the Catholic Conference of Oklahoma, before a Jan. 12, 2026, meeting of the Statewide Charter School Board in Oklahoma City. The board rejected the proposed Jewish charter school on Feb. 9, 2026.
Nuria Martinez-Keel/Oklahoma Voice
Law & Courts Religious Charter Schools Push New Cases Toward Supreme Court
Advocates seeking to establish publicly funded religious schools in three states.
9 min read
The U.S. Supreme Court is seen, Wednesday, Jan. 14, 2026, in Washington.
The U.S. Supreme Court is seen on Wednesday, Jan. 14, 2026, in Washington. Religious charter advocates are betting a full Supreme Court will side with their efforts to establish religious charter schools.
Rahmat Gul/AP
Law & Courts Educators Sue Over ICE Activity on School Grounds and Nearby
The challenge targets the Trump administration's revocation of a policy that limited immigration enforcement at schools.
5 min read
A sign reading "Protect Neighbors" is posted near a bus stop as a school bus passes on Friday, Jan. 30, 2026, in Minneapolis.
A sign reading "Protect Neighbors" is posted near a bus stop in Minneapolis on Jan. 30, 2026. A lawsuit from two Minnesota school districts and the state's teachers' union says immigration agents have detained people and staged enforcement actions at or near schools, school bus stops, and daycare centers.
Kerem Yücel /Minnesota Public Radio via AP