The current trade war in the US china will touch the American toy industry, with the potential for a decrease in doll production and an increase in consumer prices.
What happened: William SuA doll manufacturer is one of those wrestling with the impact of raised rates. President’s decision Donald Trump To increase the rates about China to 145% in April led to a stop in production for many manufacturers.
Although the rate was reduced to 30% last month to facilitate trade discussions, the uncertainty about future rates left companies in a state of Flux.
As a result, SU expects to send a third fewer dolls than usual before Christmas. The rates in particular have affected industries with low margins such as toy makers, who have limited alternatives for increasing prices.
Consequently, American shoppers are expected to be confronted with this holiday season and at higher costs for a smaller range of goods.
According to a report Through The Wall Street Journal, a recent statement by a Federal Handelshof that Trump did not have the authority to impose radical rates on the US trading partners, also has complicated matters.
Also read: US rate Impact: prices rise at Walmart and Target, say employees – some jumps top 38%
However, another court has put the decision on hold, awaiting an appeal from the Trump government, so that the rates remain in place for the time being.
With the future of tariff rates uncertain, manufacturers who make more dolls for the American market to “gamble”. The rates have also affected smaller toy makers in the US, who have difficulty getting orders into Chinese factories, because these factories give priority to larger customers.
Why it matters: Despite a temporary postponement in rates, the industry managers agree that children’s puppets will be more expensive, which will be Trump’s prediction, following Trump following the industry.
With around 90% of American doll’s import from China, finding another source of dolls – and toys – is a challenge.
The impact of the trade war on the toy industry is a clear example of how international trade conflict can have far -reaching consequences for daily consumers.
As the holiday season approaches, the potential for higher prices and fewer choices for many American families can give a damper at the festive mind.
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