Tariff uncertainty threatens Christmas for toymakers and retailers

Yahoo

01-05-2025

(NewsNation) — With seven months until Christmas, President Donald Trump's hardline stance on China and rising tariffs may put the holiday season at risk for American retailers and manufacturers.
U.S. toymakers and stores rely heavily on China to stock their holiday inventory. But escalating tariffs are squeezing manufacturers, with retailers warning that the supply chain for toys and decorations is under serious threat.
The impact is already being felt, and toymakers are raising prices, retailers are slashing orders, and shipping companies are bracing for delays.
Many small businesses say they're facing an unprecedented holiday season, with some fearing they may not survive if conditions don't improve.
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Kara Dyer, the founder of Storytime Toys, told 'NewsNation Live' on Thursday that she's already cut back orders and may have to put her business on hold if tariffs stay in place.
Dyer explained that one of the biggest hurdles is the upfront cost of the tariffs.
'For a $100,000 order, say that I might place for the holiday season, I'll have to come up with another $150,000 to pay for that order,' said. 'That's like the first hurdle that all of these manufacturers are going to have to address, and I don't know if I can do it.'
She added, 'If we were able to pay the tariff, and we did bring the products in, we would have to pass some of that cost on to our customers,' Dyer said.
Typically, Dyer places her holiday orders by mid-April. This year, uncertainty around tariffs kept her from placing an order. She estimates she has about two weeks left to make a final decision.
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President Trump is brushing off the warnings, suggesting people can make do with less this Christmas.
'You know, someone said, 'Oh, the shelves, they're going to be open.' Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more than they would normally. But we're not talking about something that we have to go out of our way. They have ships that are loaded up with stuff, much of which — not all of it — but much of which we don't need.'
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