New tariffs on Chinese toy imports are driving sharp price hikes across U.S. toy markets, forcing families and businesses to brace for an expensive holiday season.
At a Glance
- U.S. toy prices rose 2.2% from April to May—outpacing overall inflation.
- Tariffs on Chinese-made toys surged up to 145%, with major brands raising prices up to 36%.
- Small toy companies reliant on Chinese supply chains face closure threats.
- A key court challenge against the tariffs remains stalled on appeal.
- Many toy makers are shifting production to Vietnam and India to avoid tariffs.
Prices Soar as Tariffs Take Effect
Between April and May 2025, U.S. toy prices spiked 2.2%, more than double the national inflation rate. This surge is linked to new tariffs—some as high as 145%—on Chinese-made toys, as reported by The Washington Post.
Big Brands and Small Businesses Struggle
Major manufacturers like Mattel and Hasbro are passing costs on to consumers. According to Investopedia, Hasbro recently cut 3% of its workforce to offset tariff impacts. Mattel, which aims to reduce reliance on Chinese factories to under 15% by 2026, is also raising U.S. toy prices, per The Wall Street Journal.
Small toy businesses face deeper risks: nearly half surveyed say tariffs are halting production and threatening survival.
Court Fights and Supply Chain Shifts
Illinois-based Learning Resources won a court ruling challenging the tariffs, but the Supreme Court recently declined to expedite the case, leaving resolution in limbo, according to Axios.
In response, many firms are moving production to Vietnam and India—but these transitions are costly and slow, and uncertainty over trade policy persists.
Holiday Outlook: Fewer Toys, Higher Prices
The Toy Association warns that prices may rise 36% to 56%, which could shrink unit sales by nearly half. People Magazine quotes Basic Fun! CEO Jay Foreman predicting some toys could nearly double in price—turning a $30 item into a $70 holiday purchase.
What’s Ahead?
With tariff exemptions stalled and industry efforts to shift supply chains still incomplete, American families face a costly toy season. Shoppers can expect fewer bargains and higher prices—especially on imported toys—through year’s end.
The tariff-driven toy price surge may turn into an unexpected symbol of this year’s inflation—and a potential flashpoint as the holiday season approaches.
