Latest news with #ToyAssociation
CBC
25-05-2025
- Business
- CBC
How the peaceful world of puzzles has been upended by the global trade war
Puzzle people are used to putting pieces in their place. But the chaos of the Canada-U.S. trade war is flipping the industry over, leaving business owners to pick up the pieces. "It's the uncertainty. It's nearly impossible to navigate," Bruce Donnelly told Day 6. Donnelly is the owner of Puzzles Canada, based in Georgetown, Ont. It's one of the largest puzzle retailers in Canada, stocking 92 jigsaw brands and thousands of different puzzles. It ships thousands of them each week. But the current trade war has taken a sizable piece out of those orders. And with continued uncertainty around tariffs, many puzzle retailers on both sides of the border are worried about the future of their businesses. The Toy Association, a lobby group for the U.S. toy industry, surveyed 400 of its member companies in April. It found that nearly half of its small or medium-sized businesses were worried they may go out of business because of their government's tariffs. Facing tariffs In March, Canada announced its retaliatory tariffs against Donald Trump and the U.S., which included a 25 per cent tariff on jigsaw puzzles made in the U.S. And Donnelly didn't have a chance to react. "We had shipments that were en route. We didn't have a choice. We had to pay the tariff," he said. Not wanting to put the cost on his customers, Puzzles Canada paid the difference. Even though Americans make up only 20 per cent of Puzzles Canada's customer base, Donnelly says he's feeling the impact. Half of the brands Donnelly sells are made in China, making them costly to send to U.S. customers. Initially, the U.S. put a 145 per cent tariff on goods shipped from China. That has since been reduced to 30 per cent. "We're definitely [taking] a hit," said Donnelly. The company has had to make adjustments. He's since had to halt shipments of made-in-China puzzles to the U.S., because those extra fees were just too high. He's also had to increase the price for all customers of games from White Mountain Puzzles, Springbok Puzzles, and New York Puzzle Co., which are all U.S.-made, though he didn't give an exact figure. Donnelly is bringing in more puzzles from Europe, and he can continue to sell to customers in Canada. Even so, Donnelly says his U.S. sales could be cut in half. And it's not just companies in Canada that are struggling. Mia Galison, owner of the eeBoo Corporation, is based in New York and sells jigsaw puzzles and children's toys. But many of her products are manufactured in China. "It's devastating. We are a very small company. We don't work on huge margins," said Galison. "We're hoping that some reason prevails with these tariffs or that we get some kind of carve-out for small businesses or carve-outs for the toy industry." To make ends meet, Galison has also increased the prices of her puzzles. Even with the increase, she's trying to keep them under $25 US each, but says it's not enough to make up for the cost of tariffs. Puzzles, bowling balls and toilet seats It's not just puzzles that have been caught in the crossfire of the trade war. Other seemingly odd U.S.-made products, such as toilet seats and bowling balls, have been slapped with retaliatory tariffs by the Canadian government. But why? The Canadian government hasn't provided an exact explanation for each product on that list, but international lawyer Lawrence Herman says those measures were put in place to inflict maximum pain on the United States. "These items are carefully designed to ensure that they affect companies, producers, exporters in areas where U.S. politicians may be influenced by the effect," Herman told the Cost of Living. "A company in one or another area that is affected by these Canadian tariffs would complain to its senator or to its member of Congress, asking for the tariffs on Canada to be removed. That's the whole idea behind these lists." In the meantime, Herman says Canadian companies will have to look to ship to other markets, such as Europe and the Asia-Pacific region. One of the solutions could be to shift manufacturing from China to the U.S. or Canada. But Galison of eeBoo says that isn't an easy pivot. She says it would take her company decades to develop its own manufacturing in the U.S. that would produce puzzles at the quality she's looking for. And she can't afford such an endeavour. For Galison, it's not just a matter of a slight downturn in profit. She worries her business, and many others, might not make it to the end of the year. "Empty shelves are kind of an unpleasant image when you think of it," said Galison.
Business Mayor
18-05-2025
- Business
- Business Mayor
UK Peppa Pig toy firm says trading ‘uncertain' as US-China shipments on hold
A British manufacturer that makes Peppa Pig and Fireman Sam toys has said trading with the US remains 'uncertain' after it paused shipping Chinese-made products to the country because of Donald Trump's tariffs. London-listed Character Group said on Friday that it had put shipments from China to the US 'on hold' in April after the White House announced hefty levies for imports of Chinese-made goods. The company also withdrew its guidance for the current financial year last month, as a result of the introduction of tariffs by the US. Sales of Character's products in the US, including stretchy action figures in the Heroes of Goo Jit Zu collection, represented 20% of the group's revenues in the last financial year, which ended on 31 August 2024. The company said 'substantially all' of its products sold in the US were manufactured in China. The company said its products earmarked for the US had not left a factory in China. Tit-for-tat tariffs between the US and China were raised multiple times in April in an escalating trade war, reaching on Chinese exports to the US and on US exports to China, before the countries met for negotiations last weekend. The current pause in tariffs between the US and China was welcomed by the manufacturer as a sign that 'gives hope for a negotiated resolution', but it added that uncertainty remained because of the 'volatile and evolving trade policy landscape'. The toy company added that economic uncertainty resulting from tariffs had knocked global sales, as customers have 'become increasingly cautious' and unwilling to commit to orders. Read More Liquor Sales Notch Rare Decline In 2024 As Top Shelf Demand Slows 'This is impacting sales in all our key territories,' Character said as it reported its half-year results. Despite the ongoing uncertainty, the company said it remained confident that it would be profitable in the current financial year. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The US-based industry body, the Toy Association, has previously said that 80% of toys sold in the country are manufactured in China. The organisation has campaigned for toys to kept free from tariffs, with their president calling them 'essential products for childhood development and early education'. Retail sales of toys generated over $28bn (£21bn) in the US in 2024, according to figures from Circana's US retail tracking services, which covers of the country's toy market. However, Trump has previously said that American children might 'have two dolls instead of 30 dolls' if his tariffs result in products becoming costlier and more scarce for US consumers.
Roya News
11-05-2025
- Business
- Roya News
Trump threatens 100% tariff on Mattel, mistakenly calls toy company a country
US President Donald Trump raised eyebrows after mistakenly referring to Mattel—the American toy manufacturer known for Barbie dolls—as a country during a recent statement defending his tariff policies. While arguing that tariffs are "misunderstood" in the business world, Trump attempted to cite global reactions to his trade decisions. 'You know, even Mattel is thinking about counter-tariffs,' he said, seemingly confusing the California-based company with a foreign government. Trump threatened to impose a 100 percent tariff on the company's toys after its leadership pushed back on the feasibility of shifting manufacturing to the United States. The criticism came after the toymaker defended its reliance on overseas production, arguing that making toys in the US would significantly raise costs. According to the company, such a move would make its products too expensive for many American families. In response, Trump suggested families should prepare for a leaner Christmas. 'Well, maybe the children will have two dolls instead of 30 dolls, you know?' he said, adding that the smaller haul might 'cost a couple of bucks more than they would normally.' Mattel consequently announced plans to raise prices in the US. Mattel, which produces one-fifth of its US-sold toys in China, revealed in its first-quarter earnings that it intends to reduce that number to under 15 percent by 2026. But for now, the company is bracing for the effects of Trump's 145 percent tariffs, which have shaken confidence across multiple industries. The toy giant also suspended its financial forecast for the year, pointing to uncertainty over trade policy. With around 80 percent of toys sold in the US still made in China, other companies are also warning of price hikes and supply issues. A recent survey by the Toy Association found that many small manufacturers have already pulled back orders. Roughly half of the 410 companies surveyed said they could go out of business within months if the tariffs continue.
Hindustan Times
10-05-2025
- Business
- Hindustan Times
Trump vs Ynon Kreiz: Trump blasts Barbie maker Mattel's CEO, threatens 100 pc tariff on his toys; ‘He won't sell…'
President Donald Trump threatened to levy a 100 percent tariff on Mattel, the company that makes Barbies, following the firm CEO Ynon Kreiz's announcement that the firm would continue to manufacture outside of the United States while reducing its reliance on Chinese imports. 'I've heard [Mattel] said: 'Well we're going to go counter, we're going to try going someplace else,'' the US President stated in the Oval Office on Thursday. 'That's OK, let him go, and we'll put a 100 percent tariff on his toys, and he won't sell one toy in the United States, and that's their biggest market.' Trump's warning against Mattel comes as toys, especially dolls, have become a hot topic about tariffs and the trade policies of his administration. In order to guarantee adequate supply and reasonable prices come holiday season, a number of industry representatives have urged the government to grant an exemption, warning that their dependency on Chinese imports will cause toy prices to be especially affected by the current 145 percent rate on the nation. Trump and his administration have downplayed the importance of the issue. The President has stated on multiple occasions that girls would be 'better off' for having fewer dolls, and he is now threatening to place tariffs on one of the most famous doll producers in the world. Trump made the remarks in reaction to a reporter's inquiry about Mattel's latest decision to increase its prices due to the tariffs. This comes after the US announcement about the UK deal that centered on autos and metals. Also Read: Did Pope Leo XIV vote for Trump in 2024 US election? Here's what we know about his political views Earlier this month, Mattel noted the 'changes in global trade policy and U.S. tariffs' and declared that it would be implementing 'pricing action' in its US business. During Mattel's first-quarter earnings call, CEO Ynon Kreiz mentioned that the tariff-driven price surge was one of three 'mitigating actions' the firm had been compelled to take in wake of the tariffs, along with a decrease in its reliance on goods sourced from China and a wider diversification of its supply chain. In a Tuesday interview with CNBC, Kreiz was questioned if the tariffs would make it more cost-effective to move some manufacturing to the US. He said, "We don't see that happening.: 'We believe that production in other countries—where we can be efficient and more productive—is the best balance between manufacturing outside of the U.S. and [continuing] to develop product in terms of design and creativity in America,' he stated. In case the current scenario continues, Kreiz warned against significant possible chaos in the industry, stating that '80 percent of toy production globally happens in China. The Toy Association has stated that many companies are exposed to potential risks.' 'We support the Toy Association's advocacy for zero tariffs on toys to ensure that safe and affordable products remain accessible to everyone,' he added.
Boston Globe
09-05-2025
- Business
- Boston Globe
Two dolls instead of 30? Toys become the latest symbol of Trump's trade war.
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The president's comments also touched a nerve with parents, both ones who took offense at the casual way he hypothesized that perhaps 'two dolls will cost a couple bucks more' and those who acknowledged their own kids have more toys than they need. Advertisement Either way, the U.S. toy industry has a lot riding on a possible deescalation of the tariff standoff between the Trump administration and the government in Beijing. Nearly 80% of the toys sold in the U.S. come from China. The Toy Association, a trade group, has lobbied for an immediate reprieve from the 145% tariff rate the president put on Chinese-made products. Some toy companies warn the likelihood of holiday shortages increases each week the tariff remains in effect. Advertisement Here's a snapshot of the doll debate and how tariffs are impacting toys: How much is the US doll market worth? From Barbie, Bratz and Cabbage Patch Kids to Adora baby dolls, American Girl and Our Generation, dolls are a big business in the U.S. as well as beloved playthings. The doll category, which includes accessories like clothes, generated U.S. sales of $2.7 billion last year compared to $2.9 billion in 2023 and $3.4 billion in 2019, according to market research firm Circana. Consumers splurged on toys during the height of the COVID pandemic to keep children and themselves occupied, but sales flattened as inflation seized the economy. Younger girls becoming more interested in buying makeup and skincare also has cooled the demand for dolls, Marshal Cohen, Circana's chief retail advisor, said. What are toy companies doing to navigate tariffs? The nation's largest toy maker, Mattel, said this week it would have to raise prices for some products sold in the U.S. to offset higher costs related to tariffs. The company, whose brands include Barbie and American Girl, said the increases were necessary even though it's speeding up the expansion of its manufacturing base outside of China. Smaller toy companies are expected to have a harder time than Mattel and Hasbro, which makes the eating, drinking and diaper-wetting Baby Alive. Cathey said he paused The Loyal Subjects' shipments from China in April because he couldn't pay the stratospheric tariff they would have incurred. 'Nobody insulates themselves with that much cash,' he said. With about four months' worth of inventory on hand, Cathey said his ability to secure holiday stock depends on a break in the U.S.-China trade standoff happening in the next two weeks since it would take time for cargo operations to resume. Advertisement Cepia, a Missouri company that was behind the 2009 holiday season hit Zhu Zhu Pets, launched a line of 11-inch fashion dolls called Decora Girlz last year. CEO James Russell Hornsby said he was working to relocate some production but the move won't happen in time to replace the orders he planned to get from China. Hornsby described himself as a Trump supporter and said he understands the administration's desire to reduce trade imbalances. 'Let's just get the deals done and stop all this because (Trump's) disrupting Christmas,' he said. What goes into making a doll? Although American Girl launched in 1986 with a line based on fictional historical characters, the dolls never were domestic products. They were made in Germany before production eventually moved to China. Toy experts say that in addition to lower costs, Chinese factories have developed techniques and expertise that are not easily replicated. 'We don't have any capacity in the U.S. to make rooted doll hair. And then you've got things like the faces. Some of them are hand-painted, others are done with a Tampo (printing) machine,' James Zahn, editor-in-chief of industry publication The Toy Book, said of doll-making. Hornsby said rooting the synthetic hair onto the heads of Decora Girlz dolls is carried out by skilled workers at factories in Guangzhou and Dongguan, China. 'It's not just sticking into a machine and it automatically does it,' he said. 'You have to know what you're doing in order to make that doll look like it's got a full set of hair when literally maybe only 60% of the head is filled with hair." Are toys from China safe? White House Deputy Chief of Staff Stephen Miller said last week that he assumes consumers would prefer to pay more for American-made products. Dolls made in China might have lead paint in them, he said. Advertisement Teresa Murray, consumer watchdog director at the U.S. Public Interest Research Group, said the picture is more complicated. Products for children ages 12 and under require third-party testing and certification from labs approved by the U.S. Consumer Product Safety Commission, the agency tasked with enforcing lead levels in toys, Murray said. The rules apply to all products sold in the U.S. Toys by major brands such as Fisher-Price, Mattel, Hasbro and Lego, which have long outsourced manufacturing to China, are usually in compliance, she said. But the rise of online shopping, including e-commerce platforms that ship directly to U.S. consumers from overseas, has posed a challenge, according to Murray. When valued at less than $800, such parcels entered the U.S. duty-free and were not subject to the same scrutiny as bulk imports, she said. The White House eliminated the customs exemption starting May 2 for low-value parcels that originated in mainland China and Hong Kong. U.S Customs and Border Protection expects additional oversight will make it easier to flag problems. Toy companies and industry experts argue the high tariffs on Chinese imports will tempt price-sensitive shoppers to search for cheap counterfeit toys that carry higher safety risks. Can children have too many dolls? Plenty of people agree American consumer culture has gotten out of hand, in large part due to prices kept low through the labor of foreign factory workers who earn much less than they would in the U.S. Katie Walley-Wiegert, 38, a senior marketer in Richmond, Virginia, and the parent of a 2-year-old son, agrees there's too much materialism but thinks parents should have choices when deciding what is best for their children. She found the wealthy Trump's comments off-putting. Advertisement 'I think it is a small view of what purchase habits and realities are for people who buy toys for kids,' Walley-Wiegert said. San Francisco resident Elenor Mak, who founded the Jilly Bing doll company after she couldn't find an Asian American doll for her daughter, Jillian, now 5, said the president's remarks upset her because some families struggle to buy even one doll. The trade war with China 'just makes it even more impossible for those families,' Mak said.
