Brace Yourself: Toy Prices Are About to Explode Due to New Tariffs!

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It’s possible that toy prices could significantly increase in the near future because of tariffs, and this is causing major concern for companies such as Hasbro, who are bracing themselves for what might be a catastrophic situation.

In simple terms, the term that’s been frequently used lately is “tariffs.” To put it plainly, they are essentially additional fees you pay when importing goods from another country, similar to a tax. Lately, the new U.S. administration has raised tariffs on numerous products imported, and these increases could have widespread effects. It’s important to clarify that as we discuss the impacts on the toy industry, we are not endorsing any political or economic strategies; instead, we’re focusing on the practical changes consumers might experience over the coming months.

How about discussing toys, you and I? A significant proportion of the merchandise produced by major U.S. toy manufacturers, destined for sale within our borders, is manufactured abroad. These products will incur extra tariff fees upon their arrival in the United States.

Leading the discussion, let’s focus on China. At the time of this publication, a 125% customs duty has been imposed on all goods coming from China, encompassing toys and games among others. Adding to this, the increased shipping costs that occurred during Covid-19 have also played a role. As a consequence, consumers in the U.S. can expect an increase in prices for many products either made in or being transported from China. This price surge will affect most toys and games sold by companies like Hasbro and Mattel in the United States.

This week, some major U.S. online toy retailers, including Big Bad Toy Store (BBTS) and TFSource, have alerted their customers about a significant increase in their product prices. They’re working diligently to keep these price hikes as minimal as possible.

The company Hasbro, known for its toys, has been significantly affected by the tariffs due to manufacturing everything in China. It might be worthwhile for Elon Musk to consider purchasing it now, primarily for the intellectual properties they hold, such as Dungeons & Dragons.

— Ian Miles Cheong (@stillgray) April 9, 2025

rease due to the tariffs.

In their email, BBTS pointed out some changes in tariffs:

– For the past 25 years, they’ve been a family-run business with a zero percent tariff.
– Approximately six months ago, a 10% tariff was implemented for goods made in China, which later increased to 20%.
– In April, a 34% tariff was added, making the total 54%.
– Last night, another 50% was imposed, bringing the total tariffs on Chinese goods to 125%.
– It seems that Vietnam, which accounts for 90% of their sales, was initially going to have a 46% tariff but has now been reduced to 10% over the next 90 days.

The heart of the matter lies in the direct-to-consumer toy sales industry. When new toys are unveiled before their release date, customers can pre-order them at the anticipated retail price, creating a binding agreement between the store and the customer. However, with tariffs being implemented, the price for pre-ordered items will rise after they’re released, which is regrettable but logical as most retailers cannot afford to shoulder the increased cost themselves.

It’s intriguing to consider what strategies larger companies like Hasbro might employ for products they sell directly to consumers. In an astute move, Hasbro’s former CEO Brian Goldner opted in 2019 to shift most of the company’s manufacturing from China to Vietnam and India. These countries are capable of producing Hasbro’s goods at a lower cost, which could prove beneficial now as Vietnam and India might be able to negotiate significant tariff reductions or exemptions. Meanwhile, tensions between the U.S. and China are intensifying into a full-blown trade conflict, potentially leaving China with high tariffs.

Despite manufacturing a variety of products overseas and taking pre-orders, particularly for crowd-funded “Haslab” projects which take around a year after funding to produce, Hasbro ships these items from overseas to its U.S. distribution centers, then mails them domestically to customers. Previously, these Haslab toys were not subject to duties or tariffs for customers, but this may change due to increased import costs. The upcoming Haslab item is the Transformers Omega Prime figure; however, it remains unclear whether U.S. customers will be affected by any changes or if Hasbro will absorb the extra cost. It’s worth keeping an eye on the situation to find out if Hasbro decides to cover the expenses or pass them on to consumers.

The Big Bad Toy Store has announced that they’ll be imposing a tariff fee on pre-orders, which could range from 15% to 40% of the item’s pre-order price. However, if tariffs are reduced or eliminated, they plan to remove this surcharge accordingly. It is important to note that items currently in stock will not have this additional charge.

— 🧭MangaAlerts #uw7s🌊 (@MangaAlerts) April 10, 2025

Toys experience a 70% increase in price. Approximately 85% of U.S. toys are made in China, encompassing brands like Hasbro and Mattel. This means that the price of a typical $50 doll or LEGO set could rise to $85 due to increased tariffs at Chinese ports. As a result, holiday wish lists may be affected as manufacturers struggle to cover or mitigate these additional costs.

— Apex Episodes (@ApexEpisodes) April 12, 2025

Despite the ongoing challenges and dark circumstances, there might be a potential advantage for Hasbro in this situation. For years, Hasbro has faced the problem of intellectual property theft, particularly from Chinese companies manufacturing unauthorized replicas of their toys (often referred to as “knock-offs”) or products based on their IP (such as a toy that looks like Optimus Prime and transforms into a truck but with a different name like “Star Commander”). Whenever Hasbro tries to halt these companies, they simply close down and reopen under a new name. So far, the Chinese government has not been very effective in enforcing Hasbro’s intellectual property and trademark rights within their borders. This “third-party” industry is quite profitable, with numerous companies selling products based on Hasbro IP worldwide, primarily targeting U.S. customers. The new tariffs could potentially harm Hasbro due to increased costs on imports, but they might also inadvertently cripple these unlicensed companies who are already operating on tight budgets. We’ll have to wait and see what happens next.

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2025-04-13 07:55