Toy industry CEO warns of potential Christmas disruptions due to China tariffs
Rewritten Article:
US toy companies cashing in on Trump's tariffs as Xmas looms
In the wake of President Donald Trump's tariffs on China, the toy industry is feeling the heat. But some American firms are turning lemons into lemonade.
Christmas may be under threat, warns Greg Ahearn, CEO of The Toy Association. He recently shared his concerns on CNN's "The Lead with Jake Tapper," stating, "No toys are currently being produced in China, and there are reports that major retailers in the U.S. are starting to cancel orders. So, Jake, Christmas is at risk" (The Hill).
With a massive 145% tariff looming on Chinese imports, prices of games, dolls, cars, and other toys could surge by 15-20% by fall, according to FOX TV stations. The Toy Association estimates that an astounding 80% of the toys sold in the U.S. come from China (FOX Business).
Amid this crisis, The Toy Association is pushing for a tariff exemption for toys. As per Kathrin Belliveau, chief policy officer at The Toy Association, "Your input helps us make the strongest case possible."
With a recent White House rule exempting some electronics from Chinese import tariffs, there's some hope for the beleaguered industry (FOX Business).
Last month, some U.S. toy manufacturers reported a boost in domestic manufacturing due to President Trump's import tariffs. Ohio-based Simplay3, for instance, is hiring 10% more workers and running its operation 24/7 to produce a variety of children's toys (FOX Business). Cra-Z-Art, another company, plans to ramp up its U.S. manufacturing space by 50% to counter the effects of tariffs on imported goods from China and other countries (FOX Business).
With increased domestic manufacturing space to 1.5 million square feet from its current 1 million-plus square feet, Cra-Z-Art aims to combat the economic hurdles imposed by the tariffs (FOX Business).
Smaller companies, accounting for 96% of the industry, are bearing the brunt of these tariffs, with nearly half of these firms fearing bankruptcy (The Toy Association). Efforts are underway to seek relief through advocacy and adjustments in business operations.
STEROLEN, a toy manufacturer headquartered in Illinois, noted a 25-35% increase in toy prices due to tariffs. This hike has led the company to explore expansion into other countries to diversify its supply chain and reduce reliance on China (The Toy Book).
In a grim irony, tariffs meant to protect U.S. industries may ultimately harm them. And while the toy industry grapples with these challenges, one thing is certain: American kids will still want their toys this Christmas.
This article is adapted from its original version, featuring insights from The Toy Association and other relevant sources to provide a more comprehensive understanding of the impacts and responses within the toy industry.
- Despite the threatening impact of tariffs on the toy industry, some capital expenditures by American firms, such as hiring more workers and expanding domestic manufacturing space, indicate a potential shift towards a more self-reliant economy in the toy markets.
- Amid the economic strain on smaller toy companies due to tariffs, with nearly half of these firms fearing bankruptcy, efforts have been made to seek relief through advocacy and adjustments in business operations, signaling the resilience and adaptability of the industry in sports market conditions.
