Toys, Tarrifs, and Turmoil

When we talk about tariffs, it usually feels like something far away—an economic term tossed around by politicians or news anchors. But for Rick Woldenberg, CEO of Learning Resources and hand2mind (two educational toy companies based in Illinois), tariffs are not just a headline. They’re a daily crisis, a legal battle, and a logistical nightmare rolled into one.

Rick’s story is more than just a company scrambling to survive—it’s a real-time look at how fast-changing policies ripple through factories, families, and entire industries.

From Lawsuits to Logistics

When the Trump administration increased tariffs on Chinese imports, Rick’s business was hit hard. Some tariffs soared as high as 145%. Even though he filed a lawsuit—and won a temporary reduction to 30%—his company remains in a state of constant upheaval.

To escape the worst of the fees, Learning Resources has shifted about 15% of its production to Vietnam and India. But that’s not just a matter of booking a new factory. The team has been hauling 1.5 million pounds of steel molds (the ones used to shape plastic toys), reassembling equipment, retraining workers, and rebooting quality control in totally new environments.

On top of that, they’ve had to:

• Raise prices by 5–10%

• Freeze all hiring and expansion

• Cancel a massive 600,000-square-foot building project

Even with a court win, the ruling is now being appealed. Rick has asked the Supreme Court to step in as the busy holiday toy season looms.

The Bigger Problem: Moving Isn’t a Cure-All

Let’s zoom out for a second.

What Rick is trying to do—shift production away from China—is something thousands of companies are attempting. It’s often called “friend-shoring,” the idea of moving manufacturing to countries that are on better political terms with the U.S.

Sounds smart, right? Not so fast.

1. It’s Expensive and Hard

Vietnam and India are growing as factory hubs, but they can’t match China’s speed, experience, or scale. Relocating molds and machines isn't just expensive—it takes months of planning, testing, and retraining.

2. New Countries, New Tariffs

Just when companies like Rick’s thought they were in the clear, new tariffs are hitting Vietnam (46%) and India (26%) this July. So businesses that tried to escape China’s tariffs now face new obstacles in their new homes.

3. Local Production Still Isn’t Easy

Some big manufacturers are shifting back to the U.S. or Mexico, but it’s not simple. Labor costs are higher, and many local factories aren’t set up for complex toy assembly. Smaller companies don’t have the cash to automate quickly—so they’re stuck playing whack-a-mole with trade policy.

What This Means for Families

This isn’t just a business problem. If tariffs stick around or keep changing, the costs trickle down.

• Families will pay more for toys—some estimates say tariffs could cost households an extra $3,800 per year.

• Companies like Mattel and Hasbro are already raising prices or cutting jobs.

• Smaller toy makers might not survive at all.

Rick has frozen hiring. He’s stopped expansion. He’s spending money on lawyers instead of product development. His analogy—“flying the plane while fixing it”—feels right on the money.

A Warning in Disguise

Rick’s fight isn’t just about one company. It’s a red flag for every business caught in the churn of shifting trade rules. Tariffs that bounce up and down based on presidential decisions don’t just move numbers on spreadsheets—they force real people to make painful decisions, fast.

Factories get shut down. Expansion plans are shelved. Workers lose opportunities. And ultimately, the shelves in our stores reflect the chaos behind the scenes.

So the question isn’t just “Is this policy working?” It’s: Who’s paying for it? Because right now, it’s businesses, workers, and everyday families—one box of alphabet blocks or science kit at a time.

Want to see what happens next? Keep an eye on the Supreme Court’s decision—and on your next toy receipt. Because this story isn’t over. It’s just starting to roll out, one container at a time.