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Toy Industry Giants Gather to Discuss Impact of Trump's Tariff Policy

wanju hang 2025-07-30 15:20:04

Amid the festive atmosphere of San Diego Comic-Con, small toy business owners discussed a serious topic: the negative impact of President Trump's proposed tariff policy on the toy industry.

Jonathan Cathey, CEO of collectibles company The Loyal Subjects, admitted at the "Toys, Tariffs, and Trade Wars" forum held in San Diego, California, "But ultimately, it will affect consumers—prices will rise, and sales will inevitably decline."

Contradiction Focus: China's Supply Chain Crisis

Last year, the total value of toys imported by the United States exceeded $17 billion, of which $13 billion came from China.

The Trump administration's imposition of tariffs on China was denounced by forum host Daniel Pickett as "an exaggerated and insane intimidation measure."

Toy manufacturers pointed out that tariff policies have caused chaos in the entire industry's supply chain.

Clash of Political and Business Views

Facing the "price hike warning" advice from Hasbro's CEO, Trump firmly rejected it on the grounds of "revitalizing domestic manufacturing." Cassie immediately refuted this argument as being out of touch with reality.

"480,000 manufacturing jobs in the United States remain unfilled, and even the current vacancies cannot be filled, so how can we talk about rebuilding production lines? America's value-added advantage lies in innovation rather than manufacturing."

He further emphasized the applicable boundaries of tariffs:
"Industries like automobiles and mining may need tariff protection for jobs and national security—but Barbie dolls are not included in this category."

The enterprise is trapped in a decision-making dilemma.

Super7 collectibles brand founder Brian Flynn criticizes inconsistent policies for causing business paralysis.

Trump occasionally mentions that triple-digit tariffs will "drive away all market participants."

This year's anime convention has been forced to downsize: only small booths will be set up, abandoning the originally planned large exhibition area.

Consumers will face the impact of price increases in the next quarter, "which is crucial for business survival."

President Trump has once again postponed the deadline for imposing new tariffs on toy imports to August 1st. However, industry insiders point out that the uncertainty has already caused substantial damage, making it difficult for companies to plan production and sales for the critical holiday season. Jay Foreman, CEO of toy giant Basic Fun! (which owns classic brands such as Tonka trucks and Care Bears), will analyze the impact of tariff decisions on the industry.

There is no substantial advantage in relocating the place of origin under the new tariff system.

Enterprises prefer to maintain mature supply chains.

Core strategy: Partial cost-bearing + partial cost transfer to consumers

In early April, U.S. tariffs on Chinese products soared to 145% (China produces 75% of all toys sold in the U.S.).

High tariffs lead to a 6-8 week supply chain freeze (manufacturers cannot bear the costs).

After inventory is replenished, prices will skyrocket.

The price of the dump truck has surged to $29.99-$39.99.

Tariffs over 10% must be passed on to consumers (industry profit margins cannot absorb tariffs of 30% or more).

Data Alert

Industry reports indicate that if tariffs on Chinese toys are raised to 25%, the average annual toy expenditure for American households will increase by $490 (according to data from the Toy Association of America).

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Toy Industry Giants Gather to Discuss Impact of Trump's Tariff Policy

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