At a recent toy trade show, the impending rise in tariffs imposed by Trump on Chinese imports dominated conversations among industry leaders. With 80% of U.S. toys sourced from China, companies are bracing for potential price increases of 15-20% as they re-evaluate production costs. This situation is particularly tough for small businesses, which constitute 96% of the toy industry. Changeable tariff policies add further uncertainty, complicating planning for manufacturers like Basic Fun, whose leadership expressed concern over fluctuating costs and shipment delays.
"It's untenable," Ahearn said, noting that small businesses make up roughly 96% of the American toy industry.
President Donald Trump had announced days before that he planned to increase the extra tariff he put on Chinese imports in February to 20%.
Nearly 80% of the toys sold in the U.S. are sourced from China, according to the Toy Association, a national industry group that sponsors the show.
Basic Fun CEO Jay Foreman said he didn't rush late last year to get shipments of Tonka trucks, Care Bears, and other toys his company produces in China.
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