China tariffs means 'Christmas is at risk,' toy industry CEO says
A toy industry CEO is sounding the alarm about what impact tariffs on China could have on Christmas in the U.S.
"No toys are currently being produced in China. And there are reports that major retailers here in the U.S. are starting to actually cancel orders. So, Jake, Christmas is at risk," Greg Ahearn, The Toy Association President and CEO, said on CNN's "The Lead with Jake Tapper," on Tuesday, according to The Hill.
Ahearn said the 145% tariffs on China could increase prices of games, dolls, cars and other toys by 15-20% by the fall, FOX TV stations reported, which attributed The Toy Association to saying nearly 80% of the toys sold in the U.S. are sourced from China.
"The Toy Association is aggressively advocating for a tariff exemption for toys and your input helps us make the strongest case possible," Kathrin Belliveau, chief policy officer at The Toy Association, said in a statement on Monday. "With tariffs of this magnitude on the table, it is more important than ever for us to understand how your business will be affected."
The not-for-profit trade association that represents more than 950 businesses in the industry is hopeful due to a White House rule implemented last week that exempts some electronics from Chinese import tariffs.
Last month, some U.S. toy making companies said they were experiencing a boost and increasing domestic manufacturing amid President Donald Trump’s import tariffs.
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FOX Business’ Lauren Simonetti reported that Ohio-based Simplay3 was "hiring 10% more workers and running this operation 24/7" to make its products.
The company produces slides, playhouses, play tables and a slew of other children’s toys using a rotational molding process at its facility in northeastern Ohio, per its website.
Cra-Z-Art announced it planned to ramp up its toy making in America by increasing its U.S. manufacturing space by 50% to "combat the cost of tariffs for imported goods from China and other countries."
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That move will lift the toy, art and school supplies maker’s domestic manufacturing space to 1.5 million square feet from its current 1 million-plus square feet, according to Cra-Z-Art. Its U.S. factories are located in Lewisburg, Tennessee, and Jacksonville, Florida.
FOX Business' Aislinn Murphy contributed to this report.