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- China tariffs means ‘Christmas is at risk,’ toy industry CEO says (foxbusiness.com)
Christmas Toys May Be Scarcer and More Expensive This Year
The Toy Association is warning that Christmas as we know it may be at risk due to potential tariffs on Chinese imports. With approximately 80% of toys sold in the U.S. originating in China, the proposed 145% tariffs could significantly impact the availability and affordability of toys this holiday season.
Toy Association President and CEO, Greg Ahearn, recently stated that no toys are currently being produced in China and that U.S. retailers are beginning to cancel orders. He cautioned that these tariffs could lead to price increases of 15-20% on toys like games, dolls, and cars by the fall.
The Toy Association is actively lobbying for a tariff exemption for toys. Kathrin Belliveau, the association’s chief policy officer, emphasized the need to understand the potential impact on businesses and urged companies to share their concerns. There is a glimmer of hope, however, as the White House recently exempted some electronics from the Chinese import tariffs.
While some domestic toy manufacturers, such as Ohio-based Simplay3 and Cra-Z-Art, are experiencing growth and expanding their U.S. operations, it’s unlikely they can fully compensate for the potential shortfall of Chinese imports. Simplay3, which manufactures slides and playhouses, is reportedly increasing its workforce and running its facility 24/7.
Cra-Z-Art is also increasing its U.S. manufacturing space by 50% in an attempt to offset the cost of tariffs. Despite these efforts, the potential impact on the toy industry and the holiday season remains a concern.
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- China tariffs means ‘Christmas is at risk,’ toy industry CEO says (foxbusiness.com)