- The vast majority of American toy companies cancel and delay orders In the midst of prohibitive prices on China, which means that almost 80% of all the toys sold in the United States warned that the toy supply chain was frozen, threatening to drive out many bankruptcy companies and put Christmas “in” this year.
For consumers, the holiday shopping season begins in about six months. But for retailers and manufacturers, it’s already the Christmas season – and the massive prices on China freeze the supply chain.
According to a recent Investigation of the Toys AssociationAn American industry group that represents manufacturers, 80% of medium -sized companies and 64% of small businesses cancel orders. In addition, 87% of medium -sized companies and 81% of small businesses delay orders.
And many of these companies may not even survive long enough to reach the holidays. Almost half of the small and medium -sized enterprises, which represent 96% of American toy companies, said they would do their doors in the weeks or current American tariff policy.
“Tariffs of 145% on Chinese imports froze the toy production supply chain, having a devastating impact on SMEs, many of which are held by the family … including high levels of canceled orders and important retail purchases, which will quickly lead to loan and bankruptcy defects”, said the Toy. risk”.
Indeed, the holiday shopping season can make or undo the result of a store for the year. In fact, Black Friday is traditionally when many retailers become profitable, which means that they go from red to black ink in their registers.
Meanwhile, China produces almost 80% of all New York Times.
Greg Ahearn, CEO of the Toy Association, told the Times That if production does not start soon, “there is a high probability of a toys shortage during this holiday season.”
And Jennifer Bergman, owner of the West Side Kids Toy Store in New York, said that she was afraid of not having toys for sale at Christmas.
She said to Times These shortages are already taking shape, saying that an importer who managed a large order of scooters for her reduced an expedition to Canada to avoid American prices, Bergman, ready to obtain part of his order.
For his part, President Donald Trump admitted Wednesday that his prices could have an impact on the availability of toys, but have minimized gravity.
“Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a few more dollars,” he told journalists.
Admittedly, the American toy giant Hasbro published solid income from the first quarter last week and maintained its directives in 2025, citing its ability to quickly move production to mitigate pricing impacts.
But MGA Entertainment, the manufacturer of Bratz, Lol Surprise and Little Tikes, was less confident and warned that Hasbro’s results do not reflect the overall situation.
“Consumers, in particular families who already feel in a hurry, will be those who will suffer,” said Isaac Larian, founder and CEO of MGA FortuneSydney Lake. “Come this Christmas, we examine the big shortages in the aisles of the toys, with prices with two or more digits.”
This story was initially presented on Fortune.com
