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Since the beginning of President Donald Trump’s
tariff tactics to realign the US position in
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the global manufacturing landscape, many have
questioned the impact these taxes will have on
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the toy industry, which imports most of its
products from overseas.
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At first, the president made light of it,
saying children would have 2 dolls instead of
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paying $30 when tariffs increased consumer prices.
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But then, the market started to see the real
world fallout.
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In May, Mattel announced that it would need to
raise prices on its products to offset higher
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supply chain costs.
The following month, Hasbro cut some 150
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workers and said it would have to raise
consumer prices to adjust to increased costs.
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According to the Toy Association, about 80% of
toys
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sold in the United States are imported from
China.
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Now, according to Reuters, toy makers are
looking for ways to further cut costs to
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cushion the blow from a 30% blanket tariff on
Chinese goods.
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This has translated to product and packaging
redesigns.
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The first to go, which may really rile the back
in my day
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members of the crowd,
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batteries. Toy makers are also reducing
accessories such as fewer plates and toy
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kitchens and less makeup on dolls while still
increasing prices and using cheaper packaging.
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CEO of toymaker Basic Fun, Jay Forman, told
Reuters, it’s pretty simple.
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The consumer will either pay more or get less.
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These design overhauls typically take a year to
implement, and while companies are cutting the
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number of products in their portfolio in the
interim, they still need something on shelves
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this holiday season.
It’s a tricky balancing act for manufacturers
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who need to make a toy families can afford, but
one that kids still wanna play with.
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We will soon see what that looks like.
I’m David Manti.
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This is Manufacturing Now.