From CNBC: 2025-04-04 08:38:00

President Donald Trump escalated the trade war by imposing a 10% baseline tariff on nearly every country, with higher levies on China and Vietnam, impacting the toy industry. China faced a 54% total tax, Vietnam 46%, leading to potential price hikes on toys. China retaliated with a 34% levy on all U.S. goods.

Toy companies heavily rely on Chinese manufacturers, with 77% of imported toys coming from China. Hasbro and Mattel had strategies to shift production to other countries like Vietnam, Indonesia, and India, but now face tariffs of 46%, 32%, and 26%. Analysts predict consumers will see price increases to offset tariffs.

Toy companies like Hasbro and Mattel are expected to report guidance cuts due to tariffs. Mattel shares dropped over 16.5%, Hasbro over 12%, and Funko, manufacturing in China and Vietnam, fell 18%. Companies may renegotiate contracts and alter packaging to lower costs, but consumers will likely bear the burden of increased prices.



Read more at CNBC: Toy prices could jump 50% following Trump’s tariffs on China, Vietnam