Tariffs Cloud U.S. Holiday Toy Season: Cost-Cutting Takes Center Stage

This holiday season, U.S. parents might need an extra stop, not for toys but for batteries, as manufacturers reduce packaging and accessories to cut costs amid rising tariffs.

Toy giants serving Walmart, Target, and Amazon face a 30% tariff on Chinese imports, affecting products from Hasbro and Mattel, as 80% of U.S. toys come from China, according to The Toy Association.

Firms like Popular Playthings are scaling back, delaying launches, and increasing prices, while others, like Basic Fun!, explore packaging tweaks or alternative supply chains, creating new challenges for the popular U.S. holiday toy market.

(With inputs from agencies.)