President-elect Donald Trump is promising to slap new tariffs on imports after his inauguration next month – a pledge that is prompting the toy industry to warn about the impact.
Even if the toys are designed in Europe or the US, they are often manufactured in China, a country whose exports Trump criticized last month threatened to target With a new 10% tariff as soon as he takes office. On the campaign trail, he Ongoing The idea of imposing tariffs of up to 60% on all Chinese goods. According to the industry group, The Toy Association, about 80% of American toys are manufactured in China.
Jennifer Bergman, owner of West Side Kids in New York City, told CBS News that if Trump moves forward with his tariff plan, toy prices will rise “probably immediately.” They estimate that about 90% of the toys they sell are made in China.
To be sure, the toy industry is not alone in being concerned about the impact of Trump's promised tariffs, as higher prices would potentially be imposed on a wide range of imports. delivered to consumersAfter serving the neighborhood for more than four decades, Bergman fears that higher prices could threaten his store's existence and affect his customers.
“It will be heartbreaking,” she said. “It would be a real loss to the community. It would be a real loss to me. I really can't imagine not being here.”
If Trump follows through with his tariff plans, American consumers would lose $78 billion in spending power annually on products including apparel, toys, furniture, home appliances, shoes and travel accessories, according to the National Retail Federation. said In findings released last month.
The toy industry is also sounding the alarm, with the Toy Association calling the potential tariffs “deeply damaging” and Urge Its members will need to contact their congressional representatives to express their concerns.
A tariff is essentially a tax on imports, but instead of being paid by the exporting country or company, the levy is paid by the importer – and much of it is passed on to consumers in the form of higher prices.
“A 60% tariff on China would be a major blow to international goods markets,” experts at the Peterson Institute for International Economics wrote on December 12. blog post,
He said the toy industry would be one of the US industries to face the worst impacts because China is a major US supplier.
“While toys may seem to be products for which substitute vendors would be readily available, China holds a dominant position in toy production for several reasons, including its easily reproducible ability to produce materials that meet U.S. product safety standards. Also included,” he said.
Still, some economists say Trump could use the threat of tariffs as a bargaining tool, without actually imposing import tariffs. And the tariffs could also encourage more American manufacturing of toys and other products, although it will take time for new factories to ramp up.