Trump's Tariff Policy for 2025 Hits U.S. Toy Industry: Tariffs on Imported Chinese Toys Reach as High as 145%, Supply Chain Crisis During Christmas Season

Taiwan • Business • 04/21 23:00
Trump's Tariff Policy for 2025 Hits U.S. Toy Industry: Tariffs on Imported Chinese Toys Reach as High as 145%, Supply Chain Crisis During Christmas Season

In early 2025, after Donald Trump returned to the White House, he imposed high tariffs on Chinese products, with the toy industry being the hardest hit. The import tariffs on toys made in China increased to 145%, causing a spike in U.S. import costs and chaos in the supply chain. Industry experts warn that if the situation remains unchanged, the Christmas shopping season could be severely affected, and retailers such as Target and Walmart might encounter inventory shortages.

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Trump's Tariff Policy for 2025 Hits U.S. Toy Industry: Tariffs on Imported Chinese Toys Reach as High as 145%, Supply Chain Crisis During Christmas Season

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Tariff Policy Changes: A Dramatic Increase from 10% to 145%

In February 2025, the Trump administration imposed a 10% tariff on Chinese imports due to China's alleged involvement in the fentanyl supply chain. By March, the tariff increased to 20%; by April, the import tax rate on toy products soared to 145%. This policy change included previously duty-free Chinese-made toys, such as plush toys and action figures, under high tariffs, doubling import costs instantly.

Josh Staph, CEO of Duncan Toys Company in Indiana, stated, "Our products now face a 145% tariff, and we have stopped shipping goods to the U.S." He noted that such policy changes make it difficult for businesses to formulate long-term strategies, "There are changes almost every day, making it impossible to predict."

The U.S. Toy Industry's Dependence on China

The U.S. toy industry has an annual market value of approximately $40 billion and is heavily dependent on the Chinese supply chain. According to statistics, the total value of toys imported by the U.S. in 2024 exceeded $17 billion, with more than $13 billion coming from China. Although Duncan Toys' products are designed and developed in the U.S., they are almost entirely manufactured in Chinese factories.

Greg Ahearn, CEO of The Toy Association, pointed out, "Although the U.S. also produces toys, many products are labor-intensive, and expanding domestic manufacturing capacity will take years." He added that many American toy brands are small and medium-sized enterprises with limited cash flow, making it difficult to bear the sudden high tariffs.

Supply Chain Stagnation and Christmas Season Risks

Toy industry stakeholders generally report that toys produced in the spring usually arrive in the U.S. in the summer and enter retail channels in the fall to prepare for the year-end holidays. However, due to the impact of tariffs, many companies have suspended shipments, leading to supply chain disruptions.

Staph stated, "The Christmas season inventory for retailers such as Target and Walmart has not yet reached the U.S. market. If the situation does not improve within 30 to 60 days, the Christmas season will be very difficult, and many large retailers' shelves may be empty."

Additionally, some retailers have started receiving "tariff surcharges" ranging from 15% to 25%, which are expected to eventually reach 145%. Rita Pin Ahrens, who operates three toy stores in the Washington area, said, "We are working hard to minimize the cost impact, but we have already started delaying purchases and even abandoning products that are too expensive."

Price Surge and Consumer Pressure

If tariffs persist, toy prices are bound to rise. Ahearn pointed out, "Even toys that are still available may cost twice as much as last year, or even more." This will place a significant burden on consumers, particularly families.

A retailer surveyed stated, "We have always been classified as seasonal goods and have never paid tariffs before. This policy has turned the Christmas business into an unintended casualty."

Industry Calls for Exemptions and Policy Stability

Faced with the sudden policy impact, the industry is calling on the government to reconsider the tariff policy on toys. Ahrens emphasized, "Toys are crucial for children's growth." He urged President Trump to exclude toys from the tariff list, as he did in his first term.

Staph hopes the toy industry can receive exemptions and noted that the Trump administration has started making adjustments for certain industries. He stated, "What we need is stability and predictability so that we can formulate effective operational strategies."

References

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