A CEO with 500 workers explains why he's suing Trump over tariffs: "This path is catastrophic"

[BumRushDaShow]

Source: CBS News

April 24, 2025 / 6:00 AM EDT


Learning Resources CEO Rick Woldenberg thinks the Trump administration's sweeping tariffs will be catastrophic for both his family-owned toy business and for the broader U.S. economy. That's why he's suing President Trump.

Woldenberg's business has 500 employees and sells thousands of learning-based toys like Spike the Fine Motor Hedgehog and the Pretend & Play Calculator Cash Register. Its lawsuit, filed Tuesday in the U.S. District Court in Washington, D.C., accuses Mr. Trump and other members of his administration of overreaching the president's authority in imposing the broad-based import duties. Congress has historically held the power to authorize new tariffs or make trade deals with other nations.

With the administration's higher tariffs in place, the math is dire for Learning Resources, Woldenberg said. The company's import duties are set to increase from $2.3 million prior to the Trump administration to $100 million — a roughly 4,000% increase, he said.

"This path is catastrophic"

At the same time, Woldenberg said he expects his company's sales to drop 25% this year as consumers scale back spending due to the economic impact of the tariffs. Prior to Mr. Trump's trade war. the CEO had forecast an 8% increase in sales. Economists on Wall Street say the tariffs will slow U.S. economic growth while boosting inflation. "This path is catastrophic," Woldenberg told CBS MoneyWatch. "Forces have been unleashed in the economy — the world economy as well as the U.S. economy — that will have consequences that will be irreparable."

Read more: https://www.cbsnews.com/news/tariffs-economy-trump-ceo-lawsuit-learning-resources-ceo-rick-woldenberg/

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Link to COMPLAINT (PDF) - https://www.akingump.com/a/web/vtHRNS8RhgCDKrEyNFDUJ6/20250422-001-complaint-for-declaratory-and-injunctive-relief.pdf

[IronLionZion]

1. "This path is catastrophic" might as well be the MAGA slogan these days

Sectors and geographic regions of the US are already in recession due to tariffs. Many companies like Learning Resources won't find US suppliers.

Because tariffs are paid by the companies that import the products, Woldenberg's business — not China — is on the hook for paying for Mr. Trump's high import duties.

In recent years, Learning Resources has added factories in India and Vietnam, but that effort has only moved the needle so far, he said.

There are economic reasons for why China became specialized in this type of high volume low cost manufacturing over decades. It's not going to change anytime soon.

[BigmanPigman]

2. I wonder who he voted for.