Toy Prices Could Surge by 50% in the US as Trump Tariffs Hit China and Vietnam

Toy collectors and families with children alike may experience sticker shock at the checkout at their local gaming store or big-box retailer, according to CNBC.

In the aftermath of President Donald Trump’s wide-ranging tariffs on a host of nations, particularly primary toy exporters China and Vietnam — as well as India and Indonesia — toy industry experts are warning that costs could soon significantly increase for U.S. consumers.

The addition of a 34% duty on Chinese imports, bringing the total to 54%, could see manufacturers pass the buck along to toy aisle customers stateside, as could a 46% tariff imposed on Vietnam, another country from which American retailers source many products in that category.

“Everyone is really in scramble mode,” Greg Ahearn, president and CEO of The Toy Association, told CNBC. “This is going to have massive negative repercussions for the consumer and for our industry.”

As The Globe and Mail pointed out, more than three-quarters (80%) of all toys sold in the United States are manufactured in China, making the industry highly dependent on Chinese product. And with China having threatened a 34% point-for-point retaliatory tariff, according to a statement made by that country’s commerce officials on April 4, things could go from bad to worse.

The Globe and Mail quoted Mike Zhang, a factory owner in Shantou, who said, “[The burden of the tariffs] will largely fall on the distributors and overseas buyers.”

“As manufacturers, we won’t raise the factory price if our costs remain the same. If the U.S. imposes tariffs, the corresponding amount will be reflected in the cost of the product,” Zhang added.

While China Stands Firm on Retaliatory Trade Measures Against Trump Tariffs, Vietnam May Have Less Bargaining Power

Curtis McGill — co-founder of Hey Buddy Hey Pal, which makes a variety of creativity toys, including a recent drawing toy collab with famous candy brand Peeps — elaborated on the situation concerning both China and Vietnam.

“I think the Vietnam situation will be a little bit easier to negotiate, as far as I think we will see the Vietnamese country and government come to the table quicker than China trying to resolve any trade disputes,” McGill suggested, per CNBC.

“They’re just not in a place where they can stand losing much of the business,” he added.

Toy stocks took a drubbing following the “liberation day” announcement of the Trump administration’s tariffs, with Hasbro shedding 12%, Mattel trending downward by 16.5%, and Funko dropping by 18%.