Small businesses warn of Trump tariff impact on toy industry at Comic-Con
Small business owners used the festive backdrop of Comic-Con to discuss a sobering topic: the negative impact that President Donald Trump's proposed tariffs are having on the toy industry.
"Not the most sexy topic," Jonathan Cathey, chief executive of collectibles company The Loyal Subjects, admitted at a panel titled "Toys, Tariffs, and Trade Wars" at the four-day convention in San Diego, California.
"But this ultimately affects you guys, it affects the end user," he said. "Prices will go up, and our rate of sales will go down."
Toy companies have been fretting about the impact of Trump's global tariff blitz on the industry, particularly when it comes to China.
Of over $17 billion worth of toys imported to the United States last year, more than $13 billion came from China.
But a rollercoaster tariff row between Washington and Beijing has caused havoc for U.S. businesses and their Chinese suppliers.
Panel moderator Daniel Pickett argued that the Trump administration is "imposing truly exaggerated, somewhat crazy, and frightening measures."
He said Trump's proposal to impose additional tariffs on imports "has only wreaked havoc on the entire industry."
Trump recently dismissed warnings by toy giant Hasbro's CEO Chris Cocks about rising prices if higher tariffs were imposed, defending his trade policy by emphasizing it favors domestic production.
But Cathey argued the rhetoric doesn't reflect American reality.
He said: "There's like 480,000 manufacturing jobs... that aren't even filled. So we're going to do what, we're going to bring a bunch of factory jobs back that nobody can fill."
The business owner suggested that U.S. value-addition lies in innovation rather than manufacturing.
"There are industries where tariffs make sense," Cathey continued, highlighting the automotive and mining sectors.
"There's a mechanism where tariffs make sense that actually protect jobs, American workers, and our national security. Barbie ain't it."
Brian Flynn of Super7, a collectibles and action figures brand, said the Trump administration's shifting tariff policies have caused chaos and uncertainty.
"Nobody knows what's going to happen," he said, adding that the triple-digit tariffs Trump has sometimes mentioned would "drive everyone out of the market."
Flynn said the impact was already visible at Comic-Con, where he had to limit himself to a small concession stand rather than a larger exhibit space.
Consumers will feel the impact in their wallets next quarter, he warned. "And when it hits, that's going to make a big difference for us."
© 2025 AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yomiuri Shimbun
28 minutes ago
- Yomiuri Shimbun
North Korea Dismisses US Intent to Resume Diplomacy on Denuclearization
SEOUL, South Korea (AP) — The powerful sister of North Korean leader Kim Jong Un dismissed the U.S.'s intent to resume diplomacy on North Korea's denuclearization, saying Tuesday the North flatly opposes any attempt to deny its position as a nuclear weapons state. In his second term, U.S. President Donald Trump has bragged of his personal ties with Kim Jong Un and expressed hopes of restarting nuclear diplomacy between them. Their high-stakes diplomacy in 2018-19 unraveled due to disputes over U.S.-led sanctions against North Korea. Kim has since executed weapons tests to modernize and expand his nuclear arsenal. In a statement carried by state media, Kim Yo Jong said she doesn't deny the personal relationship between her brother and Trump 'is not bad.' But she said if their personal relations are to serve the purpose of North Korea's denuclearization, North Korea would view it as 'nothing but a mockery.' She said it was worth considering that the year is 2025, not 2018 or 2019 — which was during Trump's first term — and any attempt to deny North Korea as a nuclear weapons state would be rejected. 'If the U.S. fails to accept the changed reality and persists in the failed past, the DPRK- U.S. meeting will remain as a 'hope' of the U.S. side,' Kim Yo Jong said, referring to her country by its official name, the Democratic People's Republic of Korea. She said she was responding to reported comments by a U.S. official that Trump is open to talks on denuclearization. She likely was referring to a Saturday article by Yonhap news agency that cited an unidentified White House official as saying Trump 'remains open to engaging with Leader Kim to achieve a fully denuclearized North Korea.' Kim Yo Jong is a key official on the Central Committee of the North's ruling Workers' Party. She handles the country's relations with South Korea and the United States, and South Korean officials and experts believe she is the North's second-most powerful person after her brother. Experts have said previously that North Korea would only be interested in talks on a partial surrender of its nuclear capability in return for sanctions relief and other benefits, while retaining some of its nuclear weapons. The earlier Trump-Kim diplomacy collapsed after Trump rejected Kim's calls for extensive sanctions relief in return for dismantling his main nuclear complex, a limited denuclearization step. On Monday, Kim Yo Jong rebuffed overtures by South Korea's new liberal government, saying its 'blind trust' in the country's alliance with the U.S. and hostility toward North Korea make it no different from its conservative predecessor. Her comments imply that North Korea — now preoccupied with its expanding cooperation with Russia — sees no need to resume diplomacy with South Korea anytime soon.
NHK
an hour ago
- NHK
Trump to move up Russia's ceasefire deadline
US President Donald Trump has set a new tighter deadline for Russia to agree to a ceasefire with Ukraine. On July 14, Trump called on Russian President Vladimir Putin to agree to a deal within 50 days. He threatened severe tariffs if Moscow does not act within the timeframe that ends in early September. Speaking to reporters during his visit to Scotland on Monday, Trump expressed disappointment with Putin again and said he is going to reduce the 50 days to a shorter period. He said: "I'm going to make a new deadline of about 10 or 12 days from today. There is no reason to waiting." He added, "I want to be generous but we just don't see any progress being made." Regarding possible responses to Russia's failure to act by the new deadline, Trump said, "It would be sanctions and maybe tariffs, secondary tariffs." He suggested that the secondary levies could hit imports to the US from countries buying Russian products. Trump also said he is not so interested in talking with Putin anymore. He said, "We have such nice conversations, such respectful and nice conversations and then people die the following night with a missile going into a town." In a social media post on Monday, Ukrainian President Volodymyr Zelenskyy welcomed Trump's decision to move up the date. Zelenskyy said Trump's "clear stance and expressed determination" is "right on time, when a lot can change through strength for real peace." He thanked the US president and said Ukraine remains committed to peace and will work tirelessly with the US. On the same day, former Russian President Dmitry Medvedev wrote on social media that "Trump's playing the ultimatum game with Russia." Medvedev, who currently serves as deputy chair of Russia's Security Council, also said: "Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with his own country."
Japan Times
an hour ago
- Japan Times
Trump team hears pitches on access to Myanmar's rare earths
The administration of U.S. President Donald Trump has heard competing proposals that would significantly alter longstanding U.S. policy toward Myanmar, with the aim of diverting its vast supplies of rare earth minerals away from strategic rival China, four people with direct knowledge of the discussions said. Nothing has been decided, and experts say there are huge logistical obstacles, but if the ideas are ever acted upon, Washington may need to strike a deal with the ethnic rebels controlling most of Myanmar's rich deposits of heavy rare earths. Among the proposals are one advocating talks with Myanmar's ruling junta to get a peace deal with the Kachin Independence Army rebels and another calling for the U.S. to instead work directly with the KIA without engaging the junta. Washington has avoided direct talks with the country's military leaders following their overthrow of the country's democratically elected government in 2021. The ideas have been proposed to administration officials by a U.S. business lobbyist, a former adviser to Aung San Suu Kyi, in indirect talks with the KIA and some outside experts, the sources said. The conversations have not previously been reported. Rare earths are a group of 17 metals used to make magnets that turn power into motion. What are known as heavy rare earths are used to build fighter jets and other high-performance weaponry. The U.S. produces very small amounts of heavy rare earths and is reliant on imports. Securing supplies of the minerals is a major focus of the Trump administration in its strategic competition with China, which is responsible for nearly 90% of global processing capacity, according to the International Energy Agency. Engaging the junta would be a sharp departure for the United States, given U.S. sanctions on the military leaders and the violence committed against the Rohingya minority that Washington calls genocide and crimes against humanity. Last week, the Trump administration lifted sanctions designations on several junta allies, but U.S. officials said this does not indicate any broader shift in U.S. policy toward Myanmar. The ideas pitched to the U.S. administration also include easing Trump's threatened 40% tariffs on the country, pulling back sanctions against the junta and its allies, working with India to process some heavy rare earths exported from Myanmar, and appointing a special envoy to execute these tasks, people familiar with the matter said. A soldier from the Kachin Independence Army (KIA) and his comrade cross a stream toward the front line in Laiza, Kachin state, in 2013. | REUTERS Some of these suggestions were discussed in a July 17 meeting in Vice President JD Vance's offices that included Adam Castillo, a former head of the American Chamber of Commerce in Myanmar who runs a security firm in the country, a person close to Vance's office said. Among those present were advisers to Vance on Asian affairs and trade. Vance himself did not attend, the source said. Castillo said he suggested to U.S. officials that the United States could play a peace-broker role in Myanmar and urged Washington to take a page out of China's playbook by first brokering a bilateral self-governance deal between the Myanmar military and the KIA. Myanmar's ruling junta and the KIA did not respond to a request for comment. While Vance's office declined to comment on Castillo's visit to the White House, one person familiar with the situation said the Trump administration has been reviewing policy on Myanmar, also known as Burma, since Trump's January inauguration and had weighed direct discussions with the junta over trade and tariffs. The White House declined to comment. Reviewing Myanmar policy The White House discussions were described as exploratory and in early stages by people familiar with them, who added the talks may result in no shift in strategy at all by Trump, given the administration's wariness about intervening in foreign conflicts and in Myanmar's complex crisis. "The officials took this meeting as a courtesy to the American business community and to support President Trump's efforts to balance the U.S. $579 (million) trade deficit with Burma," a senior administration official said when asked about the July 17 meeting. Castillo, who describes Myanmar's rare earth deposits as China's "golden goose," said he told U.S. officials that key ethnic armed groups — particularly the KIA — were tired of being exploited by China and wanted to work with the United States. Mines in Myanmar's Kachin region are major producers of heavy rare earths that are exported to China for processing. Soldiers of KIA man their position at the front line near Mai Ja Yang in Kachin state in 2013. | REUTERS He said he had repeatedly urged officials in Washington to pursue a deal with the KIA that includes cooperation with U.S. partners in the Quad grouping — specifically India — for resource processing and eventual heavy rare earths supply to the United States. What is known as the Quad grouping brings together the United States with India, as well as Australia and Japan. India's Ministry of Mines did not respond to an email seeking comment. An Indian government official, speaking on condition of anonymity, said he was unaware of whether the Trump administration had communicated any such plan to India but stressed that such a move would take several years to materialize because it would require infrastructure to be built for processing rare earths. Another pitch to the White House was more in line with the Myanmar policy Trump inherited from former President Joe Biden. Sean Turnell, an Australian economist and former adviser to Suu Kyi, whose government the junta toppled in 2021, said his rare earths proposal was to encourage the Trump administration to continue supporting Myanmar's democratic forces. In a visit to Washington earlier this year, Turnell said he met with officials from the State Department, the White House National Security Council and Congress, and urged continued support for the country's opposition. "One of the pitches was that the U.S. could access rare earths via KIA etc.," he said, adding that the group wants to diversify away from China. There have also been multiple discussions between U.S. officials and the Kachin rebel group on rare earths through interlocutors in recent months, said a person with knowledge of the talks, which have not previously been reported. Obstacles In the years since the coup, Myanmar has been ravaged by civil war, and the junta and its allies have been pushed out of much of the country's borderlands, including the rare earths mining belt currently under control of the KIA. A rare earths industry source said that U.S. officials had reached out around three months ago, following the Kachin takeover of the Chipwe-Pangwa mining belt, to ask for an overview of the Kachin rare earths mining industry. The person added that any new, major rare earths supply chain, which would require moving the minerals out of remote and mountainous Kachin State into India and onward, may not be feasible. Swedish author Bertil Lintner, a leading expert on Kachin State, said the idea of the United States obtaining rare earths from Myanmar from under the nose of China seemed "totally crazy" given the unforgiving mountainous terrain and primitive logistics. "If they want to transport the rare earths from these mines, which are all on the Chinese border, to India, there's only one road," Lintner said. "And the Chinese would certainly step in and stop it." For its part, the junta appears eager to engage with Washington after years of isolation. When Trump threatened new tariffs on Myanmar's U.S.-bound exports this month as part of his global trade offensive, he did so in a signed letter addressed personally to the junta's chief, Min Aung Hlaing. Min Aung Hlaing responded by lavishing praise on Trump for his "strong leadership" while asking for lower rates and the lifting of sanctions. He said he was ready to send a negotiating team to Washington, if needed. Senior Trump administration officials said the decision to lift some sanctions was unrelated to the general's letter.
