LAS VEGAS, Nev. (FOX5) – The cost for toys and baby products is expected to increase due to ongoing tariffs imposed on Chinese imports.
“A lot of American jobs are at risk, a lot of small businesses, the toy industry itself and some of its adjacent businesses,” said James Zahn, editor-in-chief of the Toy Book. “There have already been hiccups in the supply chain that you might not see in an empty shelf today, but it is coming. ”
The U.S. temporarily lowered its overall tariffs on Chinese goods from 145% to 30%. The Toy Association reports that around 80% of all toys sold in the U.S. are manufactured in China.
“It is a massive disturbance, it is the COVID economy triggered without the virus,” said Jonathan Cathey, the CEO and Founder of The Loyal Subjects based in Los Angeles.
He says he hasn’t been able to move anything because of the higher costs associated with the tariffs.
“I have a couple million dollars sitting in China busting out of my suppliers warehouse because all the other suppliers are doing the same thing because we can’t afford to move those products in,” he added.
Many of the vendors attending the ABC Kids Expo at Mandalay Bay have already raised the price of their products by up to 30%.
Sari Waiz, who created sensory toys for babies, isn’t sure how long she can stay in business.
“There is a strong possibility that I am not going to survive this because I have to keep raising prices, and there is a certain point that the consumer isn’t going to pay for the extra add-ons such as mine,” she said.
The Toy Association is currently in talks with lawmakers in Washington D.C. to advocate for lower or zero tariffs on the toy industry.
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