Armed with only teddy bears and snack demands, children might end up paying the price for the great US-China tariffs trade war that has now been unleashed.
The US imposed a steep 145 percent tariff on all goods imported from China -- toys included. The country produces around 77 percent of the toys sold in the American market. This move is expected to push up prices of toys for families across the US.
China's main toy industry body has warned that American parents may soon find higher price tags on toys.
"When US parents go shopping for their children, they will likely see more expensive products," said Liang Mei, president of the China Toy and Juvenile Products Association, in an interview with the Global Times.
Companies like Barbie maker Mattel are now considering raising prices to cope with the combined 20 percent tariffs on Chinese goods.
Retail data shows that US toy sales brought in USD 28.3 billion in 2024, remaining flat compared to 2023. But since 2019, the market's value has grown by 26 percent. The total US toy market's value in 2024 was estimated to be USD 42 billion.
As tariffs take effect, American retailers are already trying to renegotiate contracts with suppliers with many saying that US businesses will bear part of the cost, but the rest will be passed on to American consumers.
US companies have also raised concerns about possible supply chain disruptions and rising prices.
MGA Entertainment, a major toy supplier for Walmart and Target, had begun moving production out of China in March to avoid further impact, Reuters had reported. But even they were not fleet-footed enough.
