Toy Association President and CEO Greg Ahearn issued a grave warning on CNN in a recent appearance, saying President Trump’s high tariffs on Chinese imports threaten to disrupt the holiday season. Since China produces most of the world’s toys, Ahearn said the U.S. supply chain is not equipped to deal with the new reality.
What Happened: “No toys are currently being produced in China,” Ahearn said on Tuesday, observing that U.S. retailers are already canceling orders.
He emphasized that most domestic toy makers are small or mid-sized businesses that will not be able to match the volume and labor intensity of Chinese factories. “It’s the face painting on a doll. It’s the hair decorating… A lot of this is hand labor that can’t be automated here in the U.S.”
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Why It Matters: The tariffs could lead to major supply disruptions during the busiest retail period of the year. “Christmas is at risk,” Ahearn said, referring to delayed production, canceled orders, and labor shortages.
“It would take three to five years to be able to build out the capacity, the specialization. Again, a lot of the toys that are made in China, as you said, 80 percent are hand labor made toys,” he added.
While President Trump says that tariffs will boost American manufacturing, critics warn of far-reaching fallout. With China now facing up to 245% tariffs on specific products as per the latest update from the White House, it remains to be seen what kind of future lies for the toy industry, and, in effect, consumers.
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