Tariff hike puts pressure on LA's Kip's Toyland
Listen to article
Kip's Toyland, the oldest toy shop in Los Angeles, may be forced to raise prices or reduce stock as it faces tariffs of up to 145% on Chinese imports — a major blow for the nearly 80-year-old family-run store.
Around 80% of toys sold in the United States are manufactured in China.
Owner Don Kipper says the store has been receiving letters from suppliers warning of sharp price hikes due to upcoming trade penalties.
'We've been getting letters and other communication from our suppliers that say, 'Fasten your seat belts, this is on the way,'' Kipper told.
Some suppliers urged bulk orders before tariff pricing begins, while others warned of halted production ahead of the holiday season.
The development highlights renewed pressure on the US toy industry amid President Donald Trump's ongoing trade dispute with China.
In 2023, the US imported \$13.4 billion worth of toys from China, according to Commerce Department data.
Kip's Toyland sources most of its inventory from China. Kipper said he cannot afford to buy in bulk or store large quantities, unlike bigger retailers.
'It's a hostage situation. If we have to, we have to,' Kipper said of potentially paying higher prices.
Founded in 1945 by Irvin 'Kip' Kipper, a former World War II pilot and prisoner of war, Kip's Toyland began as a small shop selling flags and dolls. Today, it remains a nostalgic haven of unplugged, classic toys.
While most items on its shelves are now made in China, a few — like the American-made Slinky — are still sourced domestically.
Toy analyst Chris Byrne said rebuilding US-based toy manufacturing would take at least five years and still lead to higher consumer prices due to domestic labour and regulatory costs.
Parents visiting the shop said higher prices may force them to cut back. 'It's a real treasure,' said Aeri Schwartz, who visits with her toddler. 'Not being able to come here and buy something would be pretty unfortunate.'
Chelsea Kwoka, another parent, said she would likely shift spending to local experiences or buy second-hand toys if prices soar.
Kipper said he hopes loyal customers will still come in for birthdays or special gifts — but said he would have to 'buy smart' to keep the shop going.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
22 minutes ago
- Business Recorder
Euro zone yields mixed before US data, markets await details on US-China deal
Euro zone government bond yields were mixed on Wednesday as investors awaited US consumer price index data later in the session and details of the outcome of trade talks between the US and China. US and Chinese officials agreed on a framework to put their trade truce back on track while offering little sign of a durable resolution to longstanding trade differences. The Consumer Price Index report from the Labor Department on Wednesday could show the CPI less the volatile food and energy components rising by the most in four months. Germany's 10-year yield, the euro area's benchmark, was up 0.5 basis points (bps) at 2.54%. Euro zone yields nudge higher, long-dated bonds under pressure Money markets fully priced in a European Central Bank rate cut of 25 bps by December and an around 60% chance of the same move in September. Two-year German yields rose 0.5 bps to 1.86%, while 30-year yields were flat at 3.00%. Italian 10-year yields rose 2.5 bps to 3.48%, leaving the gap between German and Italian yields at 88.5 bps. The spread hit 86.70 bps on Tuesday its lowest level since February 2021.
Business Recorder
29 minutes ago
- Business Recorder
Taiwan's MFIG buys about 65,000 T corn from Brazil, traders say
HAMBURG: Taiwan's MFIG purchasing group bought about 65,000 metric tons of animal feed corn expected to be sourced from Brazil in an international tender on Wednesday, European traders said. The yellow corn was purchased at an estimated premium of 161.20 US cents a bushel, cost and freight (c&f) included, over the Chicago December 2025 corn contract, they said. The seller was believed to be trading house CJ International. Reports reflect assessments from traders and further estimates of prices and volumes are still possible later. The tender was dominated by Brazilian corn, with a total of eight companies, each offering 65,000 tons. Two offers each of 65,000 tons for US corn were reported, with the lowest at 176.20 cents over Chicago December said to have been submitted by trading house ADM, traders said. One offer for 65,000 tons of Argentine corn was reported at 173.43 cents over Chicago December said to have been submitted by trading house ETG. No offers were initially reported for South African corn. Shipment was sought in the tender between August 19 and September 7 if the corn was sourced from the US Gulf, Brazil or Argentina, traders said. If sourced from the US Pacific Northwest coast or South Africa, the shipment was between September 3-22. South Korea's MFG buys 68,000 tons corn in private deal, traders say The tender follows heavy Asian corn purchasing on Tuesday, especially by South Korean importers, after early week falls in Chicago corn futures. Reported progress in trade talks between the US and China could also increase corn prices in the coming weeks if China again buys US grains, traders said. Buying was also sparked by Asian importer concerns about rising costs for bulk carrier charters, which increase shipping costs.
Business Recorder
35 minutes ago
- Business Recorder
US, China reach deal to ease export curbs, keep tariff truce alive
LONDON: US and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick told reporters the framework deal puts 'meat on the bones' of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. But the Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. Lutnick said the agreement reached in London would remove some of the recent U.S. export restrictions, but did not provide details after the talks concluded around midnight London time (2300 GMT). 'We have reached a framework to implement the Geneva consensus and the call between the two presidents,' Lutnick said. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' In a separate briefing, China's Vice Commerce Minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to U.S. and Chinese leaders. The dispute may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding U.S. complaints about China's state-led, export-driven economic model. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center in Washington. 'They are back to square one but that's much better than square zero,' Lipsky added. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the U.S. side and from 10% to 125% on the Chinese side. Investors, who have been badly burned by trade turmoil before, offered a cautious response and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.57%. 'The devil will be in the details, but the lack of reaction suggests this outcome was fully expected,' said Chris Weston, head of research at Pepperstone in Melbourne. 'The details matter, especially around the degree of rare earths bound for the U.S., and the subsequent freedom for U.S.-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported.' Lutnick said China's restrictions on exports of rare earth minerals and magnets to the U.S. will be resolved as a 'fundamental' part of the framework agreement. 'Also, there were a number of measures the United States of America put on when those rare earths were not coming,' Lutnick said. 'You should expect those to come off … in a balanced way.' U.S. President Donald Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies. A resolution to the trade war may require policy adjustments from all countries to treat financial imbalances or otherwise greatly risk mutual economic damage, European Central Bank President Christine Lagarde said on a rare visit to Beijing on Wednesday. Phone call helped The second round of U.S.-China talks was given a major boost by a rare phone call between Trump and Chinese President Xi Jinping last week, which Lutnick said provided directives that were merged with Geneva truce agreement. Customs data published on Monday showed that China's exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on U.S. inflation and its jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. Lutnick was joined by U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent at the London talks. Bessent departed hours before their conclusion to return to Washington to testify before Congress on Wednesday. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the U.S. responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. US-China trade talks to resume for a second day China, Mexico, the European Union, Japan, Canada and many airlines and aerospace companies worldwide urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, according to documents released Tuesday. Just after the framework deal was announced, a U.S. appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them. The decision keeps alive a key pressure point on China, Trump's currently suspended 34% 'reciprocal' duties that had prompted swift tariff escalation.
