Updated May 7, 2025 at 3:26 PM MDT
Toy makers in the U.S. are seeing President Trump's tariff predictions come true. On April 30, during a cabinet meeting, President Trump suggested that children may have to make do with fewer toys this year.
"Well, maybe the children will have two dolls instead of 30 dolls, you know?" Trump said. Those two dolls, he added, may "cost a couple of bucks more than they would normally."
On Monday, Mattel, the U.S. toy company behind Barbie, said it would raise prices because of the administration's new 145 percent tariffs on imports from China. Other toy companies, including Hasbro, MGA Entertainment and Funko, have also raised concerns about price increases and supply chain disruptions tied to the tariffs. Nearly 80 percent of toys sold in the U.S. are manufactured in China, according to the Toy Association
Jay Foreman, CEO of Basic Fun!, told Morning Edition the concern with the rising prices is even more dire than it sounds. His company produces some of the most iconic toys in America, including Care Bears, Tonka Trucks, Lincoln Log. And he says he's already had to halt shipments because of a 145% tariff that would double the price of toys on store shelves.
But the real cost, Foreman says, may be borne by workers.
"Parents will always find something for their child, even if they have to make it," Foreman said. "But how about all the moms and dads who work for those companies, or those are their companies, will they have a Christmas because they might not have a business, they might not have a job."
In an interview with NPR's Michel Martin, he discussed the broader impact of these tariffs, noting that while families may find alternatives, the damage could be long-lasting. He also explained that moving toy production to the country is not a quick fix, because the logistics take years to set up.
This interview has been lightly edited for length and clarity.
Michel Martin: So I understand that about 80% of the toys you manufacture come from China. As briefly as you can, why is that?
Jay Foreman: The industry moved from the U.S. in the '80s. I started in a toy factory in Brooklyn, New York, and that factory moved to Korea in the late '80s, and then into China in the '90s, and the whole industry basically migrated there about 30, 40 years ago.
Martin: So what have the tariffs, in particular, the tariffs on China, meant for your company?
Foreman: It's meant we've really frozen our shipments. We're not able to ship, or we're not really shipping, out of China right now, because the 145% tariff would basically double the price of all toys. And the market, at this point, is not sustaining and not accepting the fact that the cost of the products are going to double on the shelf. So they're waiting in China and waiting around the world, hoping that these tariffs start to come down.
Martin: I'm looking online at a certain website where people buy a lot of stuff. I'm looking at a Tonka truck right now, like the classic dump truck. It's listed right now for about 25 bucks. So you're saying if you were to bring more toys in, that would cost 50 bucks?
Foreman: Yes.
Martin: And you think people just aren't going to pay that?
Foreman: They may pay it, but there'll be a lot fewer people who will pay it. Because when everything's doubling, your budget only goes halfway. And it's not just for toys, everything else, many other things in the supply chain that you buy in places like Walmart and Target or your corner store, they're all going to go up. So your entire market basket goes up. So, you know, it might not sound like a lot to spend another 10 or 15 or 20 bucks for a toy, but everything in your shopping basket goes up. And then it really starts to hurt the consumer.
Martin: Talking about a $25 Tonka truck, just for sake of hypothetical, 10 bucks? 15 bucks?
Foreman: No. Another $25.
Martin: Another $25. So you're talking about $50 for a toy dump truck. You know, the CEO of the Toy Association, an industry group, has pointed out something sort of logical, but maybe people don't think about this: that toys are made several months before they're sold in the U.S. He actually said that Christmas is at risk. Is that true?
Foreman: Christmas is very much at risk. I think parents will always find something for their child, even if they have to make it themselves, you know, arts and crafts, they'll make it. There'll be things on the shelves. The real crisis is: how about all the moms and dads who work for those companies, or those are their companies? Will they have a Christmas? Because they might not have a business, they might not have a job. And that's the knock on effect of all these things. Truck drivers not picking up at the ports, warehouse workers not unloading. Store clerks, shipping not happening. Sales not happening. Income not happening. People get laid off. Businesses close. That's the real danger. People will find things to buy for themselves and their kids, but there's going to be a tremendous amount of damage along the way.
Martin: Are any of your toys made in the U.S.? What would it take to move the rest of the product line here?
Forman: Here in the U.S., we've got a plan. We're trying to work with the President, and we've got a plan to build an operation here in the United States to make some of the products. You can't make them all, but it will take three or four years to set that up. So we're hoping to see some relief in the meantime so we can save Christmas.
Copyright 2025 NPR
