“Christmas is in danger,” according to Toy Association CEO and president Greg Ahearn. In a report by NBC News, Ahearn said U.S. President Donald Trump’s increasing tariffs are disrupting manufacturing in China, where the Toy Association estimated 80% of toys sold in the U.S. are sourced.
The warning followed Trump’s decision to place 145% tariffs on imports from China. Trump claimed that the final tariff rate on Chinese exports would decrease “substantially,” but a spokesperson for China’s Foreign Ministry denied any suggestion that the country had engaged in negotiations with the U.S.
Most Read on IEN:
Ahearn explained that toy production typically increases around this time of year to ensure products are ready for the shopping season.
However, in a related sector, Chinese producers of Christmas trees are reporting disruptions.
Reuters cited the head of an artificial Christmas tree factory who said none of its American clients had placed orders this year. A separate facility said a critical U.S. buyer paused a $408,000 order and expects it to eventually be canceled.
Trump has said one of the goals of his tariffs is to encourage more manufacturing in the U.S. Ahearn said it would be “virtually impossible” to replicate China’s toy manufacturing in the U.S., explaining that the U.S. cannot compete with China’s more experienced and less expensive toy supply chain.
American Christmas Tree Association executive director Jami Warner echoed Ahearn’s sentiment, saying that artificial Christmas trees “certainly can’t be made in the U.S.” due to a lack of technology and labor market.
The Toy Association provided further insight into the effects of tariffs on the industry through a survey that asked more than 400 member companies to assess the potential business impact of the 145% tariffs on Chinese toy imports.
The report revealed that 96% of American toy companies are small and medium-sized and that 45% to 46% predict they may go out of business within weeks or months due to the current tariff policy.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.259 --> 00:04.869
Christmas is in danger, according to Toy
Association CEO and president Greg Ahearn.
00:05.119 --> 00:09.720
In a report by NBC News, Ahearn said US
President Donald Trump's increasing tariffs are
00:09.720 --> 00:14.680
disrupting manufacturing in China, where the
toy Association estimated 80% of toys sold in
00:14.680 --> 00:17.600
the US are sourced.
The warning followed Trump's decision to place
00:17.600 --> 00:22.239
145% tariffs on imports from China.
Trump claimed that the final tariff rate on
00:22.239 --> 00:25.280
Chinese exports would decrease substantially,
but a spokesperson.
00:25.424 --> 00:29.055
For China's Foreign Ministry denied any
suggestion that the country had engaged in
00:29.055 --> 00:30.565
negotiations with the US.
00:30.815 --> 00:34.564
Ahern explained that toy production typically
increases around this time of year to ensure
00:34.564 --> 00:37.575
products are ready for the shopping season.
However, in a related sector,
00:37.814 --> 00:40.455
Chinese producers of Christmas trees are
reporting disruptions.
00:40.534 --> 00:44.215
Reuters cited the head of an artificial
Christmas tree factory who said none of its
00:44.215 --> 00:48.534
American clients had placed orders this year.
A separate facility said a critical US buyer
00:48.534 --> 00:52.659
paused a $408,000 order.
And expects it to eventually be canceled.
00:52.830 --> 00:56.799
Trump has said one of the goals of his tariffs
is to encourage more manufacturing in the US.
00:57.069 --> 01:00.669
Ahearn said it would be quote virtually
impossible to replicate China's toy
01:00.669 --> 01:04.910
manufacturing in the US, explaining that the US
cannot compete with China's more experienced
01:04.910 --> 01:08.949
and less expensive toy supply chain.
American Christmas Tree Association executive
01:08.949 --> 01:13.559
director Jamie Warner echoed Ahern's sentiment,
saying that artificial Christmas trees quote
01:13.559 --> 01:16.110
certainly can't be made in the US due to lack
of technology.
01:16.254 --> 01:17.315
And labor market.
01:17.525 --> 01:21.245
The toy Association provided further insight
into the effects of tariffs on the industry
01:21.245 --> 01:25.205
through a survey that asked more than 400
member companies to assess the potential
01:25.205 --> 01:29.084
business impact of the 145% tariffs on Chinese
toy imports.
01:29.205 --> 01:33.355
The report revealed that 96% of American toy
companies are small and medium sized,
01:33.514 --> 01:38.205
and that 45% to 46% predict they may go out of
business within weeks or months due to the
01:38.205 --> 01:39.394
current tariff policy.
01:39.605 --> 01:41.525
I'm Nolan Belstein.
This is manufacturing now.
