AN D’Hynenzio, AP Business Writer
NEW YORK (AP) – As a toy inventor, manufacturer and buyer of a store I met at the four-day annual trade show last weekend in a store selling toys, the topic has been permeated by the holiday wish list topics that have penetrated the displays.
President Donald Trump had announced a few days ago that he plans to increase China’s imports to 20% in February. he? By Tuesday, the final day of Toy Fair, participants had the answers and talk about how it would affect Playthings prices was even more urgent.
Almost 80% of toys sold in the US are sourced from China, according to the Toy Association, a domestic industry group that sponsors the show, previously known as the North American International Toy Fair. Many toy manufacturers are now renegotiating prices with retailers, looking closely at the products and seeing if they can cut costs.
Greg Ahearn, president and CEO of Toy Association, said price increases of 15% to 20% are expected for schools, dolls, cars and other toys. The price range that US consumers willing to pay ranges from $4.99 to $19.99, leaving room for small wiggles to raise prices, he said.
“That’s not acceptable,” Ahearn said. He said small and medium-sized businesses account for around 96% of the US toy industry.
Trump moved forward this week with 25% tariffs on products imported from Canada and Mexico. Some companies moved parts of their manufacturing to Mexico on Wednesday, but the president granted US automakers a month’s exemption from tariffs in neighboring North American countries.
And on Thursday, Trump postponed a 25% tariff on most goods from Mexico for a month amid widespread fears about the effects of the wider trade war.
Trump’s changing tariff statements and policies have made it difficult for toy companies to plan accordingly.
Basic and fun CEO Jay Foreman said last year he wasn’t in a hurry to get shipments of other toys produced in China by Tonka Truck, Care Bears and Boca Raton of Florida.
“If you’re planning in a chaotic environment, there’s a much more chance of being wrong than being right,” Foreman said Sunday when he was interviewed at his Toy Fairbooth. All Basic Fun toy products are made in China, with the exception of K’Nex, a construction set made in the US.
Instead, after Trump imposed an additional 10% tariff on Chinese products last month, Foreman said he doesn’t have to work hard to convince retailers to share some of the costs and hand it over to consumers. As import duties have doubled, he said the price of many of his items needs to be increased.
For example, the Tonka Classic Steel Mighty Dump truck, currently selling for $29.99, is likely to rise to $39.99 in the fall, Foreman said.
The Toy Association has worked hard to exempt the toy industry from the 10-25% tariffs Trump imposed on Chinese goods during his first term. The group once again lobbyed, trying to educate members of the Congress that toy companies could not replicate the expertise found in Chinese factories.
Ahearn pointed out that there is a lot of refinement in manufacturing and craftsmanship that has been built over generations of China over the years.
The skilled, low-cost labor available in China is currently unavailable. It takes this same amount of time to build this.
Some toy companies are considering ways to avoid price hikes.
Steve Rad, CEO of Toy Maker Abacus Brands Inc., said the Austin, Texas-based company has considered switching to factories in countries such as Cambodia and Vietnam, but concluded that they don’t have the same level of skill.
However, RAD is planning to launch one of the products made in China manufactured under the US Abacus brand and found a Texas plant. This means that you can produce Pixicade. The US-made version is expected to be in stores by August, he said.
His other toys are more complicated, Rudd said, and he doesn’t think they are feasible in the US. Instead, he is investigating whether reducing some product features can reduce costs.
Basic fun Foreman said he plans to offer new spins to provide new spins to existing toys. Take Mash’ems, a soft, water-filled collectible that features a variety of licensed characters packaged in small cardboard boxes.
“Maybe I’ll change the color of the box,” he said. “Or put it in a plastic container.”
Some retailers have already received letters from toy suppliers who have announced an immediate price increase.
Richard Dale is the owner of the Learning Express franchise in Lake Zurich, Illinois, and is president of the 85-person Learning Express franchise council. He questioned whether those suppliers are acting in good faith as many of them increased delivery from China prior to tariffs.
He and other Learning Express franchisees are studying alternatives for suppliers who want to suddenly raise prices, Dell said.
He said he is not too worried about customers comparing the cost of toys compared to the previous year, as 65% of his products are new to the market.
“We’re in the era of one day. One is two things in a day. “I think that putting something out now is preparing the stew when it might actually not be cooked.”
Original issue: March 6, 2025 10:15am EST
