US industry body The Toy Association describes the threat as the return of a dark cloud threatening the toy and retail communities.
As Trump’s trade war with China escalates, almost every type of consumer product imported from China – including toys – could potentially face taxes of up to 25%.
Tariffs so far have largely hit intermediate and capital goods, with limited direct impact on consumers. However, if Trump follows through with his threat to tax almost every product China imports to the US, it is estimated that nearly 4,000 product categories could be affected
The Toy Association has announced that the proposed 25% tariffs on $300b in Chinese imports, including children’s toys, would irreparably harm American families, jobs, and businesses.
Trump has claimed that the tariffs will not raise prices for consumers, saying that China will bear the brunt of the taxes. He has encouraged companies to avoid tariffs by moving production out of China and into the US or a country like Vietnam, saying that the next round of tariffs represented “a tremendous amount of money that would come into our country.”
However, many economists dispute this outcome, suggesting that consumers would have little choice but to pay more for affected goods, or buy fewer of them. Goldman Sachs economists predict higher consumer inflation and expect 25% tariffs on remaining Chinese goods to push up inflation by half a percentage point.
Steve Pasierb, president & chief executive at The Toy Association commented: “The return of a dark tariff cloud threatening the toy and retail communities would sharply increase the cost of toys and cause irreparable harm to companies of all sizes – particularly American small businesses. We have not relented in our fight against the threat of tariffs and will continue to push back aggressively on these damaging tactics that amount to nothing more than a tax on American families and their children and will lead to projected losses of tens of thousands of US jobs.”
The Toy Association is fighting back against tariffs on Capitol Hill and with the administration, and through the nationwide coalition, Americans for Free Trade.
“We support fair and free trade that protects American intellectual property, our workers, and businesses,” added Steve. “To be clear, any claims that tariffs are or will be paid for by China is a lie. China is not paying these tariffs; rather, American families and US companies are, through higher consumer prices and decreased profits. A fourth round on a range of everyday products will directly tax families even more.”
For more information visit www.DontTaxToys.com.