It's been no secret that the toy industry has been dealing with significant challenges in recent years as more and more kids turn away from traditional toys like action figures and such in favor of electronic tablets and smart phones for their entertainment needs. The recent bankruptcy of the largest toy retailer in the country, Toys R' Us certainly didn't help things either.
Now it would seem that the industry might be about to face another major setback with the Trump administration's next round of purposed tariffs it could impose on China.
Yahoo reports that Hasbro representatives this week were up on Capital Hill testifying in front of Congress, warning that the new tariffs could drive up the cost of toys, devastate the industry with significant job losses and lead to safety risks of products.
It's said that 85% of all toys sold in the U.S. are imported from China and toys and games are on the list of $300 billion worth of Chinese goods that could face tariffs of up to 25%.
Hasbro says since 2012 they have worked to diversify their supply chain. At one time 80% of their products came from China, but by 2018 that number was down to 67%, and their goal is to get to 60% by 2020. Nevertheless its a good bet the cost of buying toys is going to go up if the new tariffs become a reality.
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