From the newest Marvel movie figurines to plastic bulldozers with a smiley face, most toys sold in the U.S. come with two things: a sense of whimsy and a "Made in China" tag.
The latter explains why toymakers and sellers across the U.S. are panicking as the next Trump administration looms. According to NPR, tariffs were the primary topic at a toy vendor trade show last month in Orlando.
"All anybody was talking about was tariffs," Jay Foreman, CEO of the Florida-based toy company Basic Fun!, told NPR. "We know that if tariffs hit, that prices are going to go up and it's going to affect the consumer. And so we're absolutely in panic mode in our industry."
Trump has promised a 60% tariff on goods imported from China, where most toys sold in the U.S. are made. That leaves toymakers with two expensive choices: Absorb some of the tariff costs, or shift to domestic production.
Either way, the bulk of that extra cost is expected to fall to consumers.
"You're going to see a $30 Tonka Mighty Dump Truck become a $45 Tonka Mighty Dump Truck," Foreman told NPR. "The prices on so many things that consumers buy in places like Walmart and Target and on Amazon will spike."
Trump has made tariffs — taxes imposed on imported goods — his top economic talking point, claiming they would bring manufacturing back to the U.S.
The toy industry was affected in 2018, when Trump's trade war with China started with two rounds of tariffs. A third threatened to affect finished toys, according to Business Insider.
Among one of the nervous companies is Mattel, the second largest toy company in the U.S. behind Hasbro.
"This is something that will impact the entire toy industry," Mattel CEO Ynon Kreiz told investors during an earnings call.
