Overview

• Nearly 80% of U.S. toys are produced in China, but 145% tariffs have halted production, leaving the supply chain frozen and threatening widespread toy shortages for Christmas 2025.
• A Toy Association survey found 80% of mid-sized and 64% of small toy companies are canceling orders, with nearly half warning they could go out of business within months.
• Major companies like Hasbro are mitigating impacts by shifting production, reporting strong Q1 earnings and maintaining their 2025 guidance despite the crisis.
• White House officials defend the tariffs, with Stephen Miller claiming Americans will pay more for 'better-made' domestic products, while President Trump downplays concerns, suggesting children will have fewer toys at higher prices.
• Industry leaders warn that without immediate action, double-digit price increases and empty toy aisles are likely, leaving holiday retailers and consumers scrambling.