For the toy sector in the United States, customs duties imposed by Donald Trump, especially in Chinese products, are increasingly taking the appearance of an poisoned gift. And even the Christmas period could suffer. “We are already practically detained,” worries Josh Staph, the general director of Duncan Toys Company, an American company that, like the rest of the toy industry, is based mainly on production in China.
Before 145% of taxes on the products of this country, the company has simply “arrested all (SUS) deliveries to the United States,” he explains to AFP from a large warehouse in Indiana. One hundred days after Donald Trump’s return to the White House, American companies are trying to adapt to a commercial policy without a specific direction and for the toy sector, the shock is severe. Last year, the country imported $ 17.8 billion in toys, including 13.5 billion of China, according to US government data.
Manufacture in China
If Duncan Toys designs and develops his products in the United States, he has done in China, based on the knowledge of subcontractors capable of carrying out the parts they need. Elements that at the end of last year were almost free of customs tasks. Therefore, this change is “very disabled,” explains Josh Staph. “But as a business manager, after 100 days with this government, I would say that the most difficult is uncertainty.”
Shock is already felt for merchants, such as Rita Pin Ahrens, owner of three toy stores, including one in Washington, who claims to have seen their invoices increase in March by 15% to 25% due to customs tasks. Wait to continue to 145%. On their shelves, a large part of the thousands of references are carried out totally or partially in China. “We are trying to limit the cost for our customers,” he explains. This implies no longer offering too expensive products or doing actions before customs tasks are applied. But delivery delays are already happening.
In a sector that brings together small businesses, having to pay the imposing customs duties in toys can be a brake, estimates that Greg Ahearn, general director of the lobby of the sector, the association of Toy. “Toys production simply stops in China,” he said. According to Josh Staph, toys inventories in supermarkets for the holiday season have not yet entered the country. These toys generally occur in spring, arrive in summer and are delivered in autumn.
“Empty Rays”
“If nothing is established within one or two months, we run the risk of living a difficult Christmas, with empty shelves in most distributors,” says Josh Staph. And for those who will be available, American companies will have had to pay 145% more to bring them, Greg Ahearn recalls. “The price of toys can duplicate, if not, compared to last year,” he said. According to him, 90% of toys sold in the United States occur outside the country, most of which in China.
The development of production in the United States will take years, Greg Ahearn emphasizes, especially because certain specific tools can simply be moved, it would be necessary to refabulate. The sector was ready to adapt to 10% initially announced by President Trump about Chinese imports, but the rate has gradually inflated during the weeks and commercial overcoming between the two greatest global economic powers.
The hope of Josh Staph would come from an exemption granted to the sector, while Donald Trump begins to go to specific areas, such as electronics, rare earths or pharmaceutical products. Rita Pin Ahrens, who emphasizes that “toys are important for the development of children,” recalls that toys had already been exempt during the first mandate of the Republican. “I can only encourage the president to do it again,” he slips.
Source: BFM TV
