If President-elect Donald Trump changes policy, toy makers could be forced to significantly raise prices by up to 56%. Price proposal Regulations on foreign-made products are report From the National Retail Federation.
A $50 tricycle can now cost up to $78, according to a report released this week by a U.S. industry group. Under the tax plan, a $25 board game could jump to $39, and a $17 stuffed animal could jump to $27.
President Trump is calling for a universal tariff of 10% to 20% on all imports into the United States from all countries and an additional 60% tariff on all imports from China. .
The idea is to create more manufacturing jobs in the United States and boost the economy by increasing exports. But some experts worry it could raise inflation, trigger a trade war and retaliatory tariffs on U.S. exports.
“There is no toy manufacturing base in the United States anymore,” Jay Foreman, CEO of Basic Fun, which makes Care Bears and Lincoln Logs, told the Post. “What can we do?”
President Trump has threatened to increase taxes on American companies like John Deere for moving jobs overseas.
Foreign sales of U.S. agricultural products, whiskey, orange juice and even motorcycles have declined after the European Union, China and other governments imposed tariffs on those products four years ago.
Other consumer goods such as furniture, home appliances, footwear and travel goods will also see higher prices, the report said.
According to the report, the tariffs will cost consumers an additional $46 billion to $78 billion in these six product categories alone, or $362 to $624 per household.
“The additional costs associated with these proposed tariffs would be too great for U.S. retailers to absorb and, if passed on to consumers, could result in higher prices than many consumers can or will pay. It was found that,” the report states.
“Some consumers will stop purchasing products and demand will decline,” the report said.
According to the NRF report, the price of household appliances could increase by 31%, with a basic refrigerator that currently costs $650 rising to $852, or a $40 toaster oven rising to $52.
Shoe prices will also increase by up to 29%, with $90 sneakers now priced at $116, $48 women's slippers at $62 and $119 handbags at $26 more, according to the report.
By another measure, U.S. households could lose between $1,900 and $7,600 in disposable income, according to Budget Lab, a policy research center at Yale University.
The toy industry has unique vulnerabilities because the vast majority of all toys are manufactured in China, according to the report titled “Estimated Impact or Proposed Tariffs on Imported Goods” released on Monday. That's what it means.
For example, Basic Fun's Tonka Mighty dump truck, which currently sells for $30, will sell for $45 once the 60% tariff is applied, Foreman said.
