Tough times for toys industry following US China tariff trade wars

Tough times for the toy industry could turn downright miserable next year if the trade war keeps escalating.

CNN reports that the American toy industry is trying to recover from Toys “R” Us going out of business, but toymakers are worried that they could soon be hit with tariffs that will drive up the prices on almost all their products.

About 85% of the toys sold in the United States are made in China, according to the Toy Association, the industry’s trade group. Although those products have escaped the escalating trade war between China and the Trump administration so far, the next round of tariffs is widely expected to include all imports from China that haven’t already been taxed. If that happens, there’s no way toys will escape.

“This could not come at a less opportune time for our industry,” said Rebecca Mond the vice president of governmental affairs for the Toy Association. “We’re still reeling from that bankruptcy.” She argues that the solution to tariffs — bringing toy manufacturing back to the United States — wouldn’t make sense.

“It’s a labor-intensive industry that cannot be easily automated,” she said. Much of the manufacturing that has been brought back to America in recent years has gone into very automated plants with high productivity.