With Christmas looming and President Elect, Donald Trump, promising the introduction of greater trade tariffs, the toy manufacturing industry is in a rush to move away from Chinese factories.
Whilst news of greater tariffs under Trump has created more urgency, this isn’t a new problem. Toy giants such as Mattel and Hasbro have been trying to diversify away from production in China for some time, relocating to factories in India and Vietnam. This has not been easy, and the result may be increased prices for consumers.
Trump spared toys, and some other consumer goods, from tariffs in his first presidency, but it is not clear whether they will be spared the second time around. Most US industries have been seeking alternatives to China for some time, as the Biden administration left many Trump tariffs in place and added some new ones.
Hasbro is already part way through a $750m cost-cutting exercise, in which moving away from China is just one piece of the jigsaw. They are negotiating with suppliers and changing their designs to make them easier to produce. Even Jenga blocks are receiving an manufacturing overhaul which will see only one type of wood used.
Data from the US government’s Census Bureau shows US imports of games, toys and sports equipment was worth around £42bn in 2023, with around £32bn of that coming from from China, highlighting the continued dominance of China in export markets despite some diversification away from it.
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