Reuters: U.S. toy makers cut back on equipment and raise prices due to tariffs

American toy manufacturers report a forced reduction in product mix and price increases ahead of the winter sales season. About this writes Reuters.
The reason for this decision is the increase in the cost of toys due to the general 30% duty on Chinese imports imposed by the administration Donald Trump.
According to the US Toy Industry Association, about 80% of all toys sold in the country are imported from China.
As a result, large companies such as Hasbro, Mattel, MGA Entertainment, Basic Fun! and Popular Playthings are forced to change their production policies, reducing the cost of components, packaging, and logistics.
In particular, Popular Playthings delayed the launch of a new toy – a magnetic cake – due to changes in its configuration: one of the plates was removed, the magnet power was reduced, and cheaper materials were used. At the same time, the retail price of the product increased from $29.99 to $34.99.
Other companies, such as Basic Fun!, are considering supplying electronic toys without batteries or with minimal packaging to keep prices down for consumers.
Some manufacturers are also reducing the number of models, color variations, and accessories in kits.
Other companies, such as MGA Entertainment, the manufacturer of L.O.L. Surprise! dolls, are trying to move production from China to other countries, but note that this requires significant investment and 9-12 months.
Despite these changes, analysts expect online toy sales in the US to remain high. According to Adobe Analytics, Americans spent more than $8.1 billion on toys last year during the holiday season, up 5.8% year-on-year.
However, industry representatives warn that consumers may face either higher prices or a decrease in the value of products in the face of duties and rising production costs.
- In May, the American toy manufacturer Mattel, known for its Barbie dolls, announced that it would raising prices for their products in the United States through new duties on imports from China. Then prices rose to 42%.
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