Core Argument - The Supreme Court is hearing arguments regarding the legality of tariffs imposed by the president under the International Emergency Economic Powers Act, with small businesses like Learning Resources challenging these tariffs as unlawful [1][3]. Industry Impact - MGA Entertainment, a major player in the toy industry, is closely monitoring the Supreme Court proceedings, expressing concerns about the negative impact of tariffs on toy prices and sales [2][3]. - Tariffs have led to significant price increases for popular toys, with examples showing price hikes from $5.99 to $7.99 and from $14.99 to $17.99, affecting middle and lower-income consumers [4][5]. Financial Burden - A small toy maker in Illinois reported spending approximately $2.3 million in tariffs for 2024, with estimates rising to $100 million for the entire year due to the tariffs [5]. - The same company indicated that they have already paid around $11 to 12 million in tariffs this year, with sales down by 25 to 30%, which is expected to lead to layoffs across the industry [7]. Manufacturing Concerns - Plans for expanding toy manufacturing in Ohio have been put on hold due to the tariffs, despite the company's long history of domestic production [11][12]. - The CEO of MGA Entertainment criticized the tariffs, stating that no new toy manufacturing has been established in the U.S. since the tariffs were enacted, contradicting the intended goal of boosting domestic production [14]. Consumer Impact - A study indicated that tariffs could increase holiday spending by $132 per American shopper, further straining consumer budgets during the holiday season [15].