Toy store owner Amy Rutherford says rising US-China tariffs will significantly increase costs, potentially forcing her to lay off employees. Virtually all toys sold in the US are made in China, with 77% coming from the country according to the Toy Association. Rutherford’s store, Pippin Toy Co., purchases toys from vendors worldwide, but even domestically-made items contain parts sourced from China.
The 145% tariff on imported Chinese goods will impact Rutherford’s business drastically. For example, a $32 stuffed panda could cost up to $80 due to the increased tariff. The owner notes that absorbing such significant costs is not possible and may lead to store closures.
Rutherford’s vendors are also experiencing uncertainty, with some pausing shipments while others are raising prices. To conserve her budget, Rutherford is trying to minimize losses but warns that a 2% margin shrink could lead to employee layoffs. The owner emphasizes the need for certainty in business and suggests that prolonged trade tensions like these are detrimental to both businesses and the country as a whole.
Source: https://abcnews.go.com/Politics/us-toy-store-owner-costs-skyrocket-due-china/story?id=120727603