'DID THE RIGHT THING': CEO on SCOTUS case regarding Trump's tariffs

Core Viewpoint - The Supreme Court ruled against President Trump's authority to impose tariffs unilaterally, stating that he overreached his presidential powers, with a vote of 6 to 3 [1]. Company Responses - Learning Resources, a small educational toy company with approximately 500 employees, incurred over $10 million in tariff costs last year and pursued legal action that reached the Supreme Court [2]. - MGA Entertainment, a larger company with over 1,000 employees, expressed concerns about the impact of tariffs on production costs and pricing for their products, such as Bratz dolls [3][12]. Tariff Impact - Following the Supreme Court ruling, Learning Resources still faces a 15% tariff on imports, down from 18%, which is viewed as a minor improvement [4]. - The CEO of Learning Resources highlighted that the total tax burden, including federal, state, and tariffs, exceeded the company's earnings last year, indicating a severe financial strain [8]. Legal and Financial Considerations - The Supreme Court's decision deemed the tariffs unlawful, and there is existing law requiring the government to refund overcollected taxes with interest [5]. - Learning Resources plans to consider legal options regarding the tariffs and their financial implications, while acknowledging the necessity of paying the tariffs to continue operations [6]. Pricing Strategies - Both companies indicated that if they receive refunds from the tariffs, they would lower prices to benefit consumers and improve sales [18][19]. - Learning Resources has decided to forgo a planned price increase in 2026 despite inflation, aiming to average costs down to pre-tariff levels [18].