Toymakers brace for Trump tariffs: 'It's killing our mojo'
Published On Mar 4, 2025, 3:33 AM
At the North American Toy Fair in New York, toy manufacturers expressed significant concern over new tariffs announced by President Trump, which raised tariffs on products made in China by 20%. Many toy companies, like Basic Fun! and Clixo, are facing substantial cost increases and are considering price hikes for their products. The toy industry relies heavily on imports from China, with about 80% of toys sold in the US produced there. The uncertainty surrounding these tariffs is causing many companies to reevaluate their growth plans and pricing strategies. The Toy Association is advocating for exemptions for toys from these tariffs amidst fears that higher prices could alienate consumers.
Stock Forecasts
PLCE
Negative
The toy industry is experiencing tightening profit margins and increased costs due to tariffs, which might lead to reduced consumer spending on toys. Companies relying heavily on Chinese imports, like Basic Fun! and Clixo, may struggle to maintain profitability while adjusting prices. This uncertainty may negatively affect stock prices in the toy sector.
MAT
Negative
Companies like Mattel and Hasbro, which also produce a significant number of toys overseas, could face similar challenges. Their valuations might decline if consumer demand softens due to rising prices from increased tariffs, leading to a potential decrease in stock value.
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