Overview

• Toy prices rose 2.2% between April and May, far outpacing the 0.1% overall inflation rate, according to the Bureau of Labor Statistics.
• Roughly 80% of toys sold in the US are made in China, making the industry especially sensitive to changes in trade policy.
• After peaking at a 145% duty rate in April, tariffs on Chinese toy imports were cut to 30% under a 90-day reprieve that runs into early August.
• Mattel has withdrawn its financial guidance and Hasbro has laid off 3% of its workforce as companies grapple with rising import costs.
• Industry executives predict an additional 15–20% price increase by the back-to-school season and warn of potential shortages and reduced innovation.