Faced with rising costs of baby products due to tariff pressure, new parents in the United States are turning to second-hand markets.

TaiwanBusiness04/19 16:36
Faced with rising costs of baby products due to tariff pressure, new parents in the United States are turning to second-hand markets.

The United States has imposed tariffs as high as 145% on Chinese goods, leading to a spike in the prices of baby products and toys, impacting how new parents raise their children. With nearly 90% of these products being imported from China, many families are turning to the second-hand market to manage the high costs. The increased demand for second-hand goods shows how American families are adjusting their lifestyles in response to trade policies.

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04/19 16:36

Faced with rising costs of baby products due to tariff pressure, new parents in the United States are turning to second-hand markets.

The United States has imposed tariffs as high as 145% on Chinese goods, leading to a spike in the prices of baby products and toys, impacting how new parents raise their children. With nearly 90% of these products being imported from China, many families are turning to the second-hand market to manage the high costs. The increased demand for second-hand goods shows how American families are adjusting their lifestyles in response to trade policies.

Tariff Shock: Rising Prices of Baby Products and Toys

Since the Trump administration announced tariffs as high as 145% on Chinese goods, the U.S. import market has been severely impacted. According to data from the U.S. Department of Commerce, in 2024, the U.S. imported strollers worth nearly $400 million, with as much as 97% coming from China; the import ratio for child safety seats is also as high as 87%. These products were originally budget-friendly due to China's low labor costs and mature supply chain, but now face significant price increases due to tariff pressures.

The toy market has also been hit hard. The American Toy Association points out that about 80% of toys on the market come from China. These products were previously exempt from tariffs but are now included in the tax range. MGA Entertainment CEO Isaac Larian admitted, "We have no choice but to significantly raise prices by double digits." Toys have transformed from affordable consumer goods into luxury items, placing a heavy burden on family expenses.

Economic Pressure and Coping Strategies for New Parents

In the U.S., the average yearly cost of raising a child is about $20,000, which is a heavy expense for new parents who are just entering the workforce and whose income is not yet stable. Faced with rising prices for essentials like strollers, high chairs, and safety seats, many families have to seek alternatives.

"We have a second-hand cradle swing, second-hand safety gates, all baby-proofing items are all second-hand," said an American parent in an interview. Such choices not only save expenses but also reflect a direct response to the economic pressures faced by families.

The Rise of the Second-Hand Market: From Saving to Mainstream

With increasing demand, the second-hand baby products market is rapidly expanding. According to Kristin Langenfeld, CEO of the U.S. second-hand baby goods platform GoodBuy Gear, nearly one-third of baby products are now traded through the second-hand market. The platform collaborates with over 50 brands to inspect and resell returned items, providing quality assurance while allowing consumers to purchase needed items at lower prices.

In a second-hand baby goods store in the U.S., a stroller and cradle set originally priced at $400 is sold for only $200, nearly half the price. The store owner stated that these items mostly come from parents who trade in or consign, creating a community-based model of mutual support.

Alon Rotem, Chief Strategy Officer of ThredUp, also pointed out that the children's and women's clothing sold on the platform comes from American family wardrobes, thus not affected by tariffs. He emphasized, "In the tariff era, the second-hand market offers a unique shopping method, allowing consumers to obtain needed goods at reasonable prices."

Supply and Demand Imbalance and Risk of Price Rebound

However, the rapid growth of the second-hand market also brings challenges. Sheng Lu, a professor in the Department of Fashion and Apparel Studies at the University of Delaware, pointed out that as demand rises, the supply of second-hand goods may become tight, and prices may rise accordingly. "Consumers may find fewer choices and higher prices, ultimately having to reduce purchases," Lu said.

Langenfeld of GoodBuy Gear also admitted that the platform's pricing algorithm adjusts prices based on market demand and original suggested retail prices, so if new product prices rise due to tariffs, second-hand product prices may also increase.

Toy Industry Challenges and Supply Chain Breakdowns

The challenges faced by the toy industry are particularly severe. Greg Ahearn, President of the American Toy Association, stated that many toy manufacturers are small and medium-sized enterprises that cannot quickly shift production bases or establish domestic production capacity. Toy manufacturing in China relies heavily on manual techniques, such as painting doll faces and decorating hair, which are difficult to automate in the U.S.

"We simply don't have factories that can do hair for dolls. What should I do? Sell bald dolls?" MGA Entertainment CEO Larian said helplessly. Even if some companies attempt to move production back to the U.S., they face the dual challenges of labor shortages and high costs.

Dual Pressure on Retailers and Consumers

Under the dual pressure of supply chain disruptions and rising costs, major U.S. retailers have begun canceling toy orders from China. This not only leads to empty shelves but also puts businesses at risk of cash flow disruptions. Ahearn pointed out, "If we don't have products, we don't have cash flow, which means no money to pay bills."

For consumers, this means fewer choices, higher prices, and even difficulty in purchasing desired items during festive seasons. As Ahearn said, "Christmas is at risk."

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