If this were a horror movie, it would be called Tariff-ier.
The U.S.-China trade war is heating up again, and the toy industry is bracing for another potentially devastating hit — if President Donald J. Trump’s latest remarks are to be believed.
In another fiery post on Truth Social, President Trump threatened to impose a new tariff of “100% on China, over and above any tariff that they are currently paying.” Currently, that rate stands at 30%, including a 10% reciprocal tariff stacked atop a 20% “fentanyl tax.”
The move follows new Chinese export controls on rare earth minerals and comes amid a series of tit-for-tat port fees initiated by the U.S. and countered by China. Under Trump’s plan, the new tariffs would take effect Nov. 1, 2025 — or sooner.
Tariffs have hammered the toy industry this year, leading to thousands of job losses, particularly between April and July. While some stability has returned in recent months — and the overall tone at the recent LA Fall Toy Previews was cautiously optimistic — today’s news brings a grim sense of déjà vu.
At New York Comic Con (NYCC), underway now at the Javits Center (see our sister publication, The Pop Insider, for excellent coverage), the same venue that hosted Toy Fair earlier this year, chatter about the trade war’s fallout has resurfaced. During Toy Fair in March, the first significant escalation hit, sparking widespread concern across the industry. As companies including Hasbro, Funko, MGA Entertainment, EPOCH Everlasting Play, Mighty Jaxx, NECA, Mezco, and others showcase their latest offerings to fans this weekend, those fears are again front and center.
With third-quarter earnings reports set to drop later this month and the critical Q4 holiday season ramping up, the coming weeks could be volatile. Next month, a Supreme Court showdown over tariffs, led by a lawsuit involving Learning Resources and several other companies, is scheduled.
As a reminder, tariffs are taxes paid by American businesses and consumers, not China or any foreign government. The billions collected by the U.S. government in tariff revenue come directly from Americans’ pockets.
