Tariff Troubles: How Trump's Trade War Is Shaking Up Toy Manufacturing

The imposition of a 145% tariff on Chinese imports by President Donald Trump has sent shockwaves through the toy manufacturing sector, particularly impacting U.S.-based Huntar Company. Emails filled with canceled orders flooded in, leading CEO Jason Cheung to halt production at their Chinese facility, which produces educational toys for major U.S. retailers.

In response, Cheung reduced production by up to 70% and let go of a third of the factory's employees. With only a month of financial runway left, Cheung is urgently considering relocating operations to Vietnam to ensure the survival of the 42-year-old family business as the trade war takes its toll.

Despite hopes for tariff reductions following talks between the U.S. and China, the toy industry remains at risk. The pressures of high costs and logistical challenges are mounting, forcing Cheung to make difficult decisions to avoid jeopardizing both his U.S. and Chinese workforce and his father's legacy.

(With inputs from agencies.)