Learning Resources, a toymaker based in Vernon Hills, has filed a lawsuit against the federal government alongside HMTX Industries, a flooring company from Connecticut. The lawsuit, submitted to the U.S. Court of International Trade, challenges the 10 to 12.5% tariffs imposed by the Trump administration on major trading partners due to alleged forced labor practices.
The tariffs, which invoke Section 301 of the Trade Act of 1974, allow the president to implement tariffs on countries involved in unfair trade practices. The United States Trade Representative has pointed to forced labor in supply chains from the top 60 trading partners, which comprise 99.4% of U.S. imports.
“It’s not really about forced labor; it’s about raising taxes,” said Elana Ruffman, chief marketing officer at Learning Resources.
Learning Resources, known for its educational toys, previously won against Trump’s tariffs in a legal battle that reached the Supreme Court, reclaiming billions for U.S. companies. The recent tariffs replace temporary 10% global tariffs set by Trump in February after the Supreme Court deemed the initial tariffs excessive without congressional consent.
The lawsuit argues that the administration has attempted to recreate the global tariff system under different laws, asserting that the latest attempt is flawed as the government has not proven forced labor allegations. Ruffman criticized the vague language used to justify the tariffs, claiming it masks the aim of raising revenue.
In February, the Supreme Court ordered the government to refund approximately $160 billion in improperly collected tariff revenue to businesses. Learning Resources received about $10 million of its $12 million additional tariff expenses, but studies indicate that consumers bore the brunt of the tariff costs, particularly in Midwest households.
A study by the Midwest Economic Policy Institute and the University of Illinois reported that Trump’s 2025 tariffs increased costs for the average Midwest household by over $2,000, much higher than the national average. Tariffs increased annual expenses for Illinois households by $2,236, $2,586 in Indiana, and $3,158 in Michigan.
“The data confirms that the trade war launched in 2025 has been a substantial headwind for the economy, with Midwest households faring far worse than the nation as a whole,” said Frank Manzo, a co-author of the report.
Learning Resources, employing 500 people worldwide, manufactures educational toys like the Pretend & Play Cash Register, outsourcing some production to China. In 2026, the company refrained from raising prices despite new tariffs, aiming to pass savings from 2025 tariff rebates to consumers.
Ruffman stated, “We did not change our prices for 2026. That’s our mechanism of trying to get the money back to the consumers.”
Instead of layoffs or passing tariff costs to customers, Learning Resources is expanding through an EDGE tax incentive agreement with the state. The company is constructing a 700,000-square-foot facility in Vernon Hills for hand2mind, its distribution center, committing to add 37 new full-time roles and retaining 288 existing Illinois jobs.
The EDGE program provides corporate tax credits to qualifying businesses for job creation, investment, and training in Illinois. The new facility is set to open in 2028.