Tue, 04 Mar 2025

Tue, 04 Mar 2025 'I will have to raise prices by 10%' - toymakers warn of tariff pain

Trump tariffs have left toymakers stunned, scrambling and warning of higher prices.

* The North American Toy Fair in New York City was overshadowed by the recent introduction of tariffs on products made in China, Mexico, and Canada.
* US President Donald Trump's 10% tariff increase on Chinese imports in February was followed by an additional 10% border tax that came into effect on Tuesday.
* The toy industry is heavily reliant on Chinese manufacturers, with about 80% of toys sold in the US being made in China.
* Toy makers are scrambling to adjust to the sudden 20% rise in costs, with some planning to raise prices by at least 10%.
* Tariffs are a tax on imports collected by the government at the border and paid for by the companies bringing in the goods.
* The average effective tariff rate on imports from China now stands at roughly 34%, up from around 14% during Trump's first term as president.
* Businesses say the costs are getting too big to ignore, with some warning that higher prices won't go unnoticed by consumers.
* The Toy Association is lobbying for an exemption from tariffs, citing concerns about the impact on small businesses and profit margins.
* Economists warn that new tariffs on Canadian and Mexican goods could push up prices on a wide range of products.
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