Latest news with #TonkaTrucks
New York Post
23-05-2025
- Business
- New York Post
Shipping costs set to double as companies rush to import goods before China-US trade truce ends
US companies rushing to import their goods from China before the 90-day reprieve on stiff tariffs expires will be socked with an unexpected spike in shipping fees – leading to higher prices on store shelves, The Post has learned. Major carriers, including Hapag-Lloyd, announced plans to increase shipping rates for a 40-foot container between China and West Coast ports to $6,500 from $3,500, beginning June 1, according to several companies that will be hit by the hike. 6 With so many ships setting off from China to the US, there is concern that the supply chain will get backed up. ALEX PLAVEVSKI/EPA-EFE/Shutterstock The cost for shipping to East Coast ports will rise to $7,500 from $4,500, the sources added. The increase 'will squeeze profit margins and it will result in higher prices for consumers,' said Jay Foreman, CEO of Florida-based toy company Basic Fun, which makes Tonka Trucks. Typically, shipping represents about 3% of a manufacturer's cost of goods, according to Foreman, who estimates that the rate increase will double what it costs Basic Fun to ship its toys. 6 The ports in China are full to capacity. ALEX PLAVEVSKI/EPA-EFE/Shutterstock Walmart has already warned that tariffs will result in higher consumer prices even as President Trump warned the discount retailer 'eat the tariffs.' Another shipping rate hike to as much as $8,500 per container is expected by June 15, according to a Journal of Commerce report. The carriers were accused of gouging to make up for lost revenue after US companies curtailed shipments to avoid paying the 145% tariff imposed on China imports by President Trump last month. The White House and Beijing reached a trade truce on May 12 that reduces the tariffs to 30% until August 10. 'The ocean carriers are taking advantage of the back-log of shipments' that were left at Chinese ports or factories, Lou Lentine, chief executive of fitness equipment maker, Echelon, told The Post. 6 Importers, including fitness equipment maker Echelon will be facing huge shipping costs by June 1. Echelon Lentine said his freight company told him to expect to pay $6,000 — twice as much to fill up a container with Echelon's treadmills and other equipment that are made in China and Vietnam. 'It's a lot,' Lentine said, adding, 'We have to ship goods. We have no way around it.' Even though most importers have negotiated fixed shipping rates, the carriers can slap them with 'add-on' fees for peak season surcharges or spot rate increases when volume surges. 'Some of the Chinese ports are full, so they have to get freight out of the country,' said customs broker Bobby Shoule of JW Hampton Jr. & Co., a 160-year old logistics company in Jamaica, Queens. 6 The major shipping companies have warned about rate increases starting on June 1. Getty Images The proposed rate hikes, announced last week, could possibly be negotiated down by major companies like Home Depot, he added. But smaller businesses don't have the same leverage. 'We have no choice but to pay this,' Foreman complained. 'There are no controls or regulations that limit how much these shipping companies can charge.' 6 Basic Fun makes the iconic Tonka truck in factories in China. WireImage for Fathom Communications The prices for containers are far below what was being charged during the pandemic. They soared to more than $20,000 in 2021. But the logjam that is expected at the ports in the coming weeks could strain the supply chain to levels not seen since those dark days, Shoule predicted. The ports are already behind schedule by seven to 10 days, which is how long it's taking to get containers onto the rail system, he said. 6 US ports are already experiencing delays in moving containers out of the ports onto rail cars. Getty Images 'Once the glut of ships that have been sitting at all the ports in China get loaded up and start moving across the Pacific, the knock on effects will start to kick in,' Foreman also warned. 'These include too many boats hitting the West Coast ports at one time, too many container boxes being out of place, [and a] lag of boats getting back to China to pick up the next waves of product flow for the back half of the year.'
Sky News AU
09-05-2025
- Business
- Sky News AU
US weighs plan to slash China tariffs to as low as 50 per cent
The Trump administration is weighing a plan to slash the 145% tariff on Chinese imports by more than half — effective as soon as next week — as top US and China officials head to Switzerland for high-level trade negotiations, The Post has learned. Specifically, US officials are discussing a proposal to lower President Trump's punishing levy on China goods to between 50% and 54% as they begin what promise to be lengthy talks to hammer out a trade agreement, sources close to the negotiations said. Meanwhile, trade taxes on neighboring south Asian countries would be cut to 25%, the source added. 'They are going to be bringing it down to 50% while the negotiations are ongoing,' the source said of the trade tax on China. The trade tax reduction is being eyed as Trump on Thursday said China tariffs 'can only come down' as he unveiled a a trade deal with the UK in the Oval Office. 'It's at 145 so we know it's coming down,' Trump told reporters. 'I think we're going to have a very good relationship.' Insiders said the 50%-to-54% range — down from the triple-digit level that Treasury Secretary Scott Bessent said this week 'isn't sustainable' this week — is in keeping with rates that were discussed last month when President Trump met with the bosses of the three biggest retailers in the US. The CEOs – Doug McMillon of Walmart, Brian Cornell of Target and Ted Decker of Home Depot – all said the April 21 meeting at the White House was 'productive' and 'constructive' without offering details, according to reports. In response, a 'whisper' campaign spread quickly and 'the number that emerged to get the ships flowing out of China was 54%,' said Jay Foreman, CEO of Basic Fun, which makes its retro toys in China including Tonka Trucks, Care Bears and My Little Pony. 'The signals we are getting is that the dam will break by the end of this week or next, that there will be an adjustment,' Foreman told The Post. Accordingly, many retailers already have begun asking vendors to quote prices based on a range of tariff rates — anywhere between 10% and 54% — 'so they are ready to price when the goods land' in the US, Foreman added. White House spokesman Kush Desai told The Post in a statement, 'When decisions on tariffs are made, they will come directly from the President. Anything else is just pure speculation.' Nevertheless, 'CEOs felt very reassured after Bessent's remarks at Milken,' a source told The Post, referring to the Treasury secretary's 'sustainable' comment at the Milken Institute Global Conference in Los Angeles this week. 'People are realizing that deals are going to be made.' Treasury's phone has been 'blowing up' with southeast Asian nations looking to seal a deal, the source added. The chatter in retail circles has likewise been traveling fast — and is very specific, industry sources told The Post. 'We are hearing China at 50% to 54% and [other] Asian countries at 25%,' said Lawrence Rosen, chairman of Cra-Z- Art, a New Jersey-based arts-and-crafts distributor. Another toy CEO, Nick Mowbray of Zuru – maker of Bunch O Balloons – said 'The speculation is 54%,' but he added, 'That's definitely not been told explicitly to retail yet.' While sharply lower than what's currently in effect, a 50% trade tax would pose a formidable challenge as retailers prepare for the crucial holiday season, sparking drastically higher prices at stores, retail executives said. A Tonka Mighty Dump Truck priced at $29.99 this week would cost $49.99 with a 54% tariff. While steep, that's 'workable,' according to Forman. A 145% levy, on the other hand, would translate to a $79.99 Tonka truck, which is 'just too much' and would bring sales to a virtual standstill, he said. Noel Hacegaba, chief operating officer of the Port of Long Beach in California, said 'there are high hopes that the meeting between the US and China in Switzerland will help to de-escalate growing trade tensions and set a path forward for resolving the trade war.' He added, however, 'it will take a strong signal coming out of the meeting for shippers to readjust their sourcing and routing.' The toy industry is in crosshairs of the tariff wars as 80% of toys sold in the US are made in China. Basic Fun has 35 containers on the water that are expected to arrive in the US this week and next, but seven of them were sent on April 10 when the 145% levy became effective. Foreman plans to store those containers in a warehouse because his company can't afford the higher levy. The rest of his toys are being stored at warehouses and at his factories in China – until he gives the word to ship them here. 'The retailers behavior changed after the White House meeting as if they got some confidence,' said retail guru Gerald Storch, a former CEO of Toys R Us and Canadian based department store company HBC. 'They are less panicked about how quickly they need a domestic source and they seemed to relax a little bit,' Storch told The Post. 'This is what I've heard from vendors about the retailers' tone and sense of urgency.' Originally published as US weighs plan to slash China tariffs to as low as 50 per cent - down from 145 per cent - as soon as next week: sources
New York Post
08-05-2025
- Business
- New York Post
US weighs plan to slash China tariffs to as low as 50% as soon as next week: sources
The Trump administration is weighing a plan to slash the 145% tariff on Chinese imports by more than half — effective as soon as next week — as top US and China officials head to Switzerland for high-level trade negotiations, The Post has learned. Specifically, US officials are discussing a proposal to lower President Trump's punishing levy on China goods to between 50% and 54% as they begin what promise to be lengthy talks to hammer out a trade agreement, sources close to the negotiations said. Meanwhile, trade taxes on neighboring south Asian countries would be cut to 25%, the source added. Advertisement 'They are going to be bringing it down to 50% while the negotiations are ongoing,' the source said of the trade tax on China. 5 The CEOs, including Doug McMillon of Walmart, all said the April 21 meeting at the White House was 'productive' and 'constructive' without offering details, according to reports. Bloomberg via Getty Images Insiders said the 50%-to-54% range — down from the triple-digit level that Treasury Secretary Scott Bessent said this week 'isn't sustainable' this week — is in keeping with rates that were discussed last month when President Trump met with the bosses of the three biggest retailers in the US. Advertisement The CEOs – Doug McMillon of Walmart, Brian Cornell of Target and Ted Decker of Home Depot – all said the April 21 meeting at the White House was 'productive' and 'constructive' without offering details, according to reports. In response, a 'whisper' campaign spread quickly and 'the number that emerged to get the ships flowing out of China was 54%,' said Jay Foreman, CEO of Basic Fun, which makes its retro toys in China including Tonka Trucks, Care Bears and My Little Pony. 'The signals we are getting is that the dam will break by the end of this week or next, that there will be an adjustment,' Foreman told The Post. Accordingly, many retailers already have begun asking vendors to quote prices based on a range of tariff rates — anywhere between 10% and 54% — 'so they are ready to price when the goods land' in the US, Foreman added. Advertisement 5 The toy industry is in crosshairs of the tariff wars as 80% of toys sold in the US are made in China. Target CEO Brian Cornell, above. Bloomberg via Getty Images White House spokesman Kush Desai told The Post in a statement, 'When decisions on tariffs are made, they will come directly from the President. Anything else is just pure speculation.' Nevertheless, 'CEOs felt very reassured after Bessent's remarks at Milken,' a source told The Post, referring to the Treasury secretary's 'sustainable' comment at the Milken Institute Global Conference in Los Angeles this week. 'People are realizing that deals are going to be made.' Treasury's phone has been 'blowing up' with southeast Asian nations looking to seal a deal, the source added. Advertisement The chatter in retail circles has likewise been traveling fast — and is very specific, industry sources told The Post. 5 Treasury's phone has been 'blowing up' with southeast Asian nations looking to seal a deal, a source said. Treasury Treasury Secretary Scott Bessent, above. AFP via Getty Images 'We are hearing China at 50% to 54% and [other] Asian countries at 25%,' said Lawrence Rosen, chairman of Cra-Z- Art, a New Jersey-based arts-and-crafts distributor. Another toy CEO, Nick Mowbray of Zuru – maker of Bunch O Balloons – said 'The speculation is 54%,' but he added, 'That's definitely not been told explicitly to retail yet.' While sharply lower than what's currently in effect, s 50% trade tax would pose a formidable challenge as retailers prepare for the crucial holiday season, sparking drastically higher prices at stores, retail executives said. 5 Home Depot CEO Ted Decker Home Depot A Tonka Mighty Dump Truck priced at $29.99 this week would cost $49.99 with a 54% tariff. While steep, that's 'workable,' according to Forman. A 145% levy, on the other hand, would translate to a $79.99 Tonka truck, which is 'just too much' and would bring sales to a virtual standstill, he said. Noel Hacegaba, chief operating officer of the Port of Long Beach in California, said 'there are high hopes that the meeting between the US and China in Switzerland will help to de-escalate growing trade tensions and set a path forward for resolving the trade war.' Advertisement He added, however, 'it will take a strong signal coming out of the meeting for shippers to readjust their sourcing and routing.' The toy industry is in crosshairs of the tariff wars as 80% of toys sold in the US are made in China. Basic Fun has 35 containers on the water that are expected to arrive in the US this week and next, but seven of them were sent on April 10 when the 145% levy became effective. 5 Noel Hacegaba, chief operating officer of the Port of Long Beach in California, said 'there are high hopes that the meeting between the US and China in Switzerland will help to de-escalate growing trade tensions.' AFP via Getty Images Advertisement Foreman plans to store those containers in a warehouse because his company can't afford the higher levy. The rest of his toys are being stored at warehouses and at his factories in China – until he gives the word to ship them here. 'The retailers behavior changed after the White House meeting as if they got some confidence,' said retail guru Gerald Storch, a former CEO of Toys R Us and Canadian department store HBC. 'They are less panicked about how quickly they need a domestic source and they seemed to relax a little bit,' Storch told The Post. 'This is what I've heard from vendors about the retailers' tone and sense of urgency.'
BBC News
04-03-2025
- Business
- BBC News
Toymakers brace for Trump tariffs: 'It's killing our mojo'
The business of the North American Toy Fair, an annual showcase of the latest in silly putty, monster trucks and board games, is fun. But this year at the convention center in New York City, tariffs were killing the February, US President Donald Trump raised tariffs on products made in China by 10%. Then last week, with little warning, he announced an additional 10% border tax, which has now come into force on Tuesday, along with tariffs on Mexico and Canada. In the toy industry, which estimates that about 80% of toys sold in the US are made in China, the rapid-fire announcements have stunned businesses, leaving them scrambling to figure out how to swallow a sudden 20% rise in moves are the first of what Trump has threatened will be far wider action, making it a preview of the upheaval that could be coming for companies around the world. "It's the first thing we talk about and the last thing we talk about," toymaker Jay Foreman said this weekend from his booth at the trade show, where classic hits such as Lincoln Logs, Tonka Trucks and K'Nex were on business, Basic Fun!, makes 90% of its products in China and had been planning to counter the cost of the initial 10% tariff with a mix of higher prices for customers and lower profits, both for his firm and for his manufacturing partners. He presented the strategy to his board on Wednesday, ahead of the toy show, only to have to rip it up the next day, after Trump's later announcement. He will have to shoulder the tariff costs for products headed to stores this spring, he said, but is now expecting to raise prices for many items by at least 10% later in the year. "The reality is that tariffs will raise the cost of toys for consumers," he said. "If a customer says, 'Then I can't buy it', then I can't sell it, because I can't produce to lose money." Tariffs are a tax on imports collected by the government at the border and paid for by the companies bringing in the Trump's first term, China was the main target of the measures, with more than $360bn worth of products sent to the US getting hit by the the time, toys and many other consumer products were Trump has now applied the duties across the board, hitting almost 15% of the imports into the US each actions have been overshadowed by tariffs on products made in Mexico and Canada - America's top two trade partners, which have long operated under a free trade agreement with the US. And they fall short of the "up to 60%" tariff that Trump called for on the campaign trail last year. But with the latest move, businesses say the costs are getting too big to average effective tariff rate on imports from China now stands at roughly 34%, with recent actions amounting to a rise roughly twice as large as the increase during Trump's first four-year term as president, according to estimates by Goldman Sachs. "10% - it's something we can somehow live with. 20% is a different ball game," said Yaron Barlev, chief operating officer of Clixo, a Brooklyn-based maker of magnetic building toys which started about five years ago and signed a deal last year to start selling its toys at Target later in manufacturing in China now under way to satisfy that order, his firm, which employs 18 people in the US, is expecting to have to shoulder the costs of the border duties, scrambling its plans for profits. He said he hoped Trump would offer some kind of reprieve for toys but was not feeling especially optimistic."It's much less predictable now than he used to be so I really don't know." Trump has said his actions will help boost manufacturing in the US, by making it less cost-effective to make products overseas. But toymakers like Clixo, which had hoped to do its manufacturing in the US, say high costs and limited manufacturing capacity in the US make that idea a string of weaker economic data has raised concerns that the uncertainty due to the tariff talk is starting to cause wider economic paralysis. Basic Fun!, which employs about 165 people and does roughly $200m in sales each year, had been looking to grow. But with the threat of tariffs bearing down, Mr Foreman recently put plans for acquisitions on hold, unsure how to calculate what a business would be worth in such a changeable environment. "[A tariff] sounds good - 'Let's stick it to them!' But the ripple effect is unbelievable," Mr Forman said. The Toy Association, a business lobby group, says it is trying to make the case to the White House and Congress that toys should be exempt from tariffs, as they were before, warning that higher prices won't go unnoticed by a public already upset by the jump in prices in recent years. President Greg Ahearn said his members are largely small businesses with profit margins barely as large as the tariffs that are getting under way. "We think we have a very strong point to make and we're hoping they're going to be open to listening," he said. The Toy Fair is his organisation's marquee event, drawing businesses from around the world who line New York's convention center with cheerful displays of blocks, high-contrast baby books and spiky coloured balls. But worry about tariffs pulsed through the gathering this year."It's killing our mojo," said Mr Ahearn, noting that it was his members' top concern. From their booths, toymakers greeted questions about Trump's moves with head shakes, grimaces and disbelief. "20% is a lot," said Ada Luo, sales director for Wonderful Party, a manufacturer in Shenzhen, China, which makes Christmas light necklaces, leis and New Year's hats. "10% maybe... between the supplier and the buyer we can share, but 20%? We don't have a clue."
