US toy industry CEO warns ‘Christmas is at risk’ amid China tariffs

Donald Trump’s brutal tariffs on China could impact Christmas in the US, with 80 per cent of toys sold in the US sourced from China.

A toy industry CEO is sounding the alarm about what impact tariffs on China could have on Christmas in the US.

“No toys are currently being produced in China. And there are reports that major retailers here in the US are starting to actually cancel orders. So, Jake, Christmas is at risk,” Greg Ahearn, The Toy Association President and CEO, said on CNN’s The Lead with Jake Tapper on Tuesday, according to The Hill.

Mr Ahearn said the 145 per cent tariffs on China could increase prices of games, dolls, cars and other toys by 15-20 per cent in the second half of this year, FOX TV stations reported, which attributed The Toy Association to saying nearly 80 per cent of the toys sold in the US are sourced from China.

Chinese-made toys displayed on a shelf at a Target store in California. Picture: Justin Sullivan/Getty Images/AFP

145 per cent tariffs on China could increase prices of games, dolls, cars and other toys by 15-20 per cent. Picture: Justin Sullivan/Getty Images/AFP

“The Toy Association is aggressively advocating for a tariff exemption for toys and your input helps us make the strongest case possible,” Kathrin Belliveau, chief policy officer at The Toy Association, said in a statement on Monday.

“With tariffs of this magnitude on the table, it is more important than ever for us to understand how your business will be affected.”

The not-for-profit trade association that represents more than 950 businesses in the industry is hopeful due to a White House rule implemented last week that exempts some electronics from Chinese import tariffs.

The Toy Association said nearly 80 per cent of the toys sold in the US are sourced from China. Picture: Justin Sullivan/Getty Images/AFP

An employee works at a toy factory in Yiwu, China. Picture: Adek Berry/AFP

Last month, some US toy-making companies said they were experiencing a boost and increasing domestic manufacturing amid President Donald Trump’s import tariffs.

FOX Business’ Lauren Simonetti reported that Ohio-based Simplay3 was “hiring 10 per cent more workers and running this operation 24/7” to make its products.

The company produces slides, playhouses, play tables and a slew of other children’s toys using a rotational molding process at its facility in northeastern Ohio, per its website.

Cra-Z-Art announced it planned to ramp up its toy making in America by increasing its US manufacturing space by 50 per cent to “combat the cost of tariffs for imported goods from China and other countries.”

That move will lift the toy, art and school supplies maker’s domestic manufacturing space to 1.5 million square feet from its current 1 million-plus square feet, according to Cra-Z-Art.

Its US factories are located in Lewisburg, Tennessee, and Jacksonville, Florida.

FOX Business’ Aislinn Murphy contributed to this report.

This article originally appeared in Fox Business and has been reproduced with permission.

Originally published as US toy industry CEO warns ‘Christmas is at risk’ amid China tariffs