US toy prices could surge after President Donald Trump’s trade war expansion hits China and Vietnam. The two countries, biggest manufacturers of imported toys in the US, will face 10% to 54% tariffs on goods. This could lead to massive price hikes on toys, especially during this year’s back-to-school season. Industry experts warn that companies cannot absorb the costs, which will be passed on to consumers.
China and Vietnam are vital markets for the US toy industry, with 77% of imported toys coming from China and 16% from Vietnam. Toy companies like Hasbro and Mattel have already started shifting production to other countries, such as Indonesia and India, but this may not be financially viable due to the steep tariffs.
Experts predict that consumers will bear the brunt of the price hikes, with potential increases ranging from 35% to 50%. The US toy industry is already feeling the impact, with Mattel shares falling over 16.5% in one day of trading. Toy companies are exploring ways to reduce costs, but it’s clear that prices will rise.
The greatest budgetary impact will be felt by those who can least afford it, according to industry expert Greg Ahearn. The US toy industry is bracing for a significant price hike, and consumers should expect to see increased costs this back-to-school season.
Source: https://www.cnbc.com/2025/04/04/toy-prices-trump-tariffs-china-vietnam.html