A BELOVED toymaker has spoken out on how the current economic landscape will impact the Christmas shopping season, as consumers fear outages for popular kids’ toys.
The toymaker’s hopeful comments come in the wake of shopper outrage over spiked Barbie prices, stemming from the 145% tariff on Chinese imports that has since fallen.
EPAA toymaker and small business owner has spoken out on the fate of the Christmas shopping season amid the trade war[/caption]The current administration is caught up in an all out trade war with nations around the world, issuing back-and-forth tariffs to gain economic leverage over one another.
As a result, consumers are seeing higher prices on the shelves, as retailers frequently pass on the rising costs to shoppers.
The trade battle with China in particular has sparked fears among US consumers, with the previous 145% levy on Chinese imports threatening to cause gift shortages during Christmas time and raise prices.
However, small business owner David Mauro is hopeful that this will not be the case thanks to a recent trade agreement between the US and China.
The two countries agreed to temporarily lower tariffs, dropping the 145% tax down to 30% for 90 days – good news for Mauro’s company Jesusdoll.com, which makes talking religious toys.
The small business relies heavily on imports from China, as do many other toymakers.
More than 80% of toys sold in America are manufactured in China, per The Toy Association trade group.
Thanks to the lowered levies, Mauro said that “for us, it means there’s going to be a Christmas this year,” he told CBS News.
Due to the exorbitant tariffs, the small business owner had paused incoming shipments from China.
With his product supply in limbo overseas, Mauro feared if Jesusdoll.com would have enough inventory to sell to US shoppers this Christmas – the time of year when his company sees the most business.
“We’re a seasonal company and we make Christian toys and Christmas is a big season for us,” he said.
“So we’re going to be able to have products to be able to sell this Christmas, and that’s huge for us and it’s huge for our retailers, who were on the verge of not having any product at all.”
While the 30% tax on shipments from China is still “painful,” Mauro said that it would not prevent him from doing business.
The small business owner is slated to receive roughly $100,000 worth of dolls from China, which he hopes will come before the 90-day tariff reduction period ends.
Why has Trump hit China, Canada, and Mexico with tariffs?
DONALD Trump has imposed 10% tariffs on Chinese imports and Beijing has retaliated. Trump also hit Canada and Mexico with 25% tariffs, but walked back many of them on March 6
China:
Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl. China has slammed Trump for the claim and described fentanyl as America’s problem. The country also said the tariffs are a “serious violation” of the World Trade Organization rules. China is filing a lawsuit with the WTO against the US for “wrongful practice.” China serves as a major supplier of auto parts to the US. Phones, computers, and other key electronic devices were also in the top imports from China last year, according to Commerce Department data. In 2023, the US imported around $427 billion worth of products from China, according to the US Census Bureau. Data reveals that 78% of all smartphones imported from the US came from China. Trump’s tariff threat has sparked fears of price rises for fashion items and toys. Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two superpowers.Canada:
Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States. He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil. A total of 59 pounds of fentanyl was seized at the northern border by US agents between 2022 and 2024, according to the Canadian government. Meanwhile, almost 62,000 pounds of the drug was seized at the southern border. The 25% tariffs Trump proposed on Canadian goods were destined to come into force on March 4. Canada responded with a 25% tariff on $155 billion of American imports. On March 6, Trump warned the 25% tariff on steel and aluminium would come into force on March 12. Ontario Premier Doug Ford responded with a 25% surcharge on electricity exported to Michigan, Minnesota, and New York. Trump then threatened to double the 25% tariff to 50%. The Ontario premier warned that he “will not hesitate to increase” the levies or completely shut off power to the three US northeastern states. Both sides then agreed to talk and toned down their threat. Ford then paused the electricity surcharge.Mexico:
Mexico has managed to twice postpone Trump’s tariffs on Mexican goods. On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China. But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump’s concerns on border security and drug trafficking. Trump then threatened that the 25% tariffs would come into force on March 4. Two days later, Trump announced a delay on most goods covered under the US-Mexico-Canada Agreement. Trump credited Mexican President Claudia Sheinbaum’s progress on border security and drug smuggling as a reason for the pause on the levies. The Mexican Navy has seized thousands of kilograms of drugs from criminal gangs. Sheinbaum promised to deploy 10,000 extra troops to the Mexico-US border. Still, Trump has maintained that on April 2, the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.“We are hightailing it over here… we should make it before 90 days,” said Mauro, who admitted that the trade war made it difficult to plan for his business. “It can change on a dime, and we’ve seen that.”
The business owner had planned to ship his toy supplies to Canada, the UK, and Australia had the 145% tariff rate on China remained in place.
“Just based on the uncertainty of the situation, we’re bringing it back here just so we have product for our domestic market,” said Mauro.
“Assuming these numbers hold up, we’ll be able to afford to bring it back. Before, we couldn’t. We were really locked out.”
DOLL DILEMMA
Prior to the rate drop from 145% tariffs to 30% on Chinese imports, US shopper were outraged over the impact of the trade war on Barbie prices.
Mattel, the manufacturer of iconic toy brands such as Barbie and Hot Wheels, revealed in its earnings report earlier this month that toy prices could soon rise.
President Trump recently noted that dolls might soon cost “a couple bucks more” – a prediction that had already become a reality.
A Barbie doll in a swimsuit at Target spiked 42.9% in just one week last month, costing shoppers $14.99, per a pricing analysis by Telsey Advisory Group.
APBarbie prices spiked under the 145% tariff on imports from China[/caption]As the uncertain tariff situation played out, Mattel revealed it would be “taking pricing action in its US business” where necessary, meaning it would continue to raise prices where the company saw fit.
Although the levies on China have come down temporarily, the retail landscape still remains uneasy about the current economic conditions.
For example, the Walmart CEO issued a blunt eight-word warning to all shoppers as huge changes are set to hit this month.
Plus, consumers may see price changes beyond the retail sector – McDonald’s prices will “skyrocket” as the main supplier of a popular item passes a new cost to customers and issues a “threat.”
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