Thu, 19 Feb 2026

Thu, 19 Feb 2026 'We're still on edge': Toy firms look to US Supreme Court as tariffs hit profits

"You cannot go to sleep on this president," says one toymaker, of the ongoing uncertainty over trade policy.
At the recent toy industry convention, Rick Woldenberg, CEO of Learning Resources, was a celebrity of sorts due to his high-profile lawsuit against the Trump administration's tariffs on Chinese goods. Last year, President Trump imposed 145% tariffs on Chinese imports, causing many US companies to raise prices and cut profits. The toy industry was particularly hard hit, with some businesses increasing prices by as much as 20%. Woldenberg's company was forced to raise the price of its Tonka plastic toy truck from $30 to $35. However, a recent study suggests that while tariffs have had an impact on consumer prices, it has been relatively small. The average tariff for Chinese imports has decreased to around 20% after some products were exempted and higher rates were reduced. As a result, many companies are holding out hope that the tariff situation will stabilize this year. Despite this optimism, many business owners remain uncertain about the future of trade policy under Trump. "You can't go to sleep with this president," said Jay Foreman, CEO of Basic Fun, which saw its profits drop 65% last year due to tariffs. Even if the Supreme Court rules in favor of Woldenberg's lawsuit and tariffs are reduced or eliminated, some companies like Floss & Rock may not be able to recover costs they've already paid. A decision by the Supreme Court could also lead to refunds for businesses that have been affected by tariffs, which could help stabilize prices. However, experts warn that even if the court rules in favor of the administration, other tools such as quotas and duties on Chinese imports could still be used to impose tariffs.
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