Overview

• Toy prices climbed 2.2 percent from April to May, marking the fastest monthly increase on record, according to the Bureau of Labor Statistics.
• A 90-day tariff reprieve has cut duties on Chinese imports to 30 percent but is scheduled to expire in early August, risking a reversion to 145 percent levies.
• Manufacturers and retailers have passed on import fees with price hikes up to 36 percent and shifted focus to bestsellers and lower-priced items.
• Major players including Mattel have withdrawn annual financial forecasts and Hasbro has laid off about 3 percent of its workforce due to tariff-driven uncertainty.
• Companies are moving some production to Vietnam and Indonesia, but over three-quarters of U.S. toys still depend on Chinese factories and safety labs.