Christmas Bear

The toy industry can breathe a little bit easier today.

Confirming the reports that had been circulating all week, the potentially devastating 15% tariffs on more than $160 billion in imported goods — including toys — covered in List 4B have been called off. The U.S. and China entered into a Phase One agreement that was confirmed by President Donald J. Trump and the Office of the United States Trade Representative this morning. Under the new deal, tariffs set to go into effect on Dec. 15 will not be charged, though the previously-enacted 25% rate on $250 billion in Chinese imports will remain. A 7.5% tax will cover the remaining $120 billion in goods that were previously taxed at 15%.

The U.S. will modify its Section 301 tariff actions as it works toward developing a Phase Two agreement with China.

Under the Phase One agreement, China has agreed to purchase additional U.S. goods, primarily agricultural. Additionally, the calming in the trade war is further fueled by an effort to reign in the rampant IP theft in China, an issue that plagues the toy industry. The Phase One agreement requires structural agreements to IP and other areas.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.