President Donald Trump’s tariffs threaten to put a swallowed at Christmas.
The United States imports up to 75% of the toy products that it sells from China, according to the United States Department of Commerce, which makes it one of the most dependent industries of the supply chain of that country. Together with the team and sports games, it is the fourth largest import category in that nation.
As a result, toy industry officials warn US consumers to wait for higher prices and less options this year, even for vacations, as a result of Trump’s rates.
“Christmas is in danger,” said Greg Ahearn, president and CEO of the Toy Association, the main commercial group. He said that production in China continues to decrease every time Trump increases the rates of that country.
And it is happening in an inconvenient moment. Traditionally, production begins to increase around this point of the year so that the products are ready for the autumn and winter shopping season, he said.
As Trump revealed that China would face some of the highest rates in their “day of liberation” in the country by the country of the taxes, and then said that the duties in China would increase to 145%, the shares of Hasbro and Mattel have moved. While both companies had previously incorporated a tariff impact of 20% of China in their financial projections by 2025, they have not yet publicly discussed the impact of a 145% tax.
It is one of the reasons why the Association of Toys is copatrocinating the Easter egg roll of this year’s White House, part of an impulse to maintain toys, which have traditionally avoided commercial tasks, free of Trump’s tariffs.
“The administration maintains regular contact with business leaders, industry and everyday American groups about our commercial and economic policies. However, President Trump has been clear: if he is worried about tariffs, the solution is simple. Make his product in the United States,” said White House spokesman Kush Desai in a statement.
That is not so easy, say the toy industry officials. The experience in Chinese toys has been perfected through decades of experience, and the United States industry supply chain has become dependent on molds, dyes, labor and security techniques that are uniquely found there.
“This is qualified work, and you don’t have to avoid that,” Ahearn said. “And they are significantly less expensive and more experienced than it can be in the US, he added, referring to China’s toys supply chain.”
It would be practically impossible to replicate the efficiencies of the industry in the United States in a reasonable period of time, he said.
Jonathan Silva, co -owner of WS Game Company, based in Massachusetts, said he fears he has to fire his 22 employees if the situation is prolonged. His firm designs high -end versions of classic games and 100% of its manufacture occurs in China, he said.
“We are standing,” said Silva. He estimates that they have approximately four months of accumulated product track, but after that it is in the air.
“We are investigating all the options we can, but at this time our business is quite waiting,” he said.
Even companies that do not trust China say that Trump’s tariffs are having a domino effect. Beate Caso, Chief of Bruder Toys America, who manufactures her product in Germany, says that, in addition to taking into account the 10% rates there, the entire industry will face higher costs due to the shortage of shipping containers worldwide as production in China for all products decreases.
“Prices will rise greatly,” said Cano. “There will also be a limited supply, and then add rate costs. Therefore, everything will become more expensive, and consumers will definitely feel it.”
