The shelves at Duncan Toys’ Indiana warehouse may soon lose their sparkle. Thanks to Donald Trump’s fresh wave of tariffs—this time a whopping 145% on Chinese-made toys—imports have hit a standstill, and panic is spreading across America’s $40 billion toy industry.
Josh Staph, CEO of Duncan Toys, says things have "ground to a halt." His yo-yos and gliders—though designed in the US—are manufactured in China, where factories specialize in intricate toy parts. “We stopped shipping goods into the US,” he admitted, calling the impact “debilitating.”
Under Trump’s revived presidency, the toy trade is paying the price. Of the $17 billion in toys imported last year, $13 billion came from China. Now, the cost of getting these toys into American hands has more than doubled, threatening both businesses and the holiday season.
Rita Pin Ahrens, who runs three toy stores, is already feeling the burn. With tariff surcharges climbing from 15% to 25% and soon 145%, she’s had to pause pricey orders and brace for delays. “It’s a complete nightmare,” she said, fearing for her stores’ survival.
For small brands, it’s a perfect storm: tariffs slapped on pre-manufactured goods, sky-high costs, and shipment delays. Greg Ahearn of The Toy Association warned that “production of toys has all but stopped in China.” If the deadlock continues, Christmas 2025 could be a quiet one—with toy aisles barren and prices ballooning.
While the US has some domestic toy production, much of it is labor-intensive and can’t scale quickly. Industry insiders hope Trump carves out exemptions, reminding him that toys were spared in his previous term.
“Toys are essential for childhood development,” Ahrens stressed. “We urge the president to rethink this.”
Unless there’s a policy pivot, America may soon face a joyless holiday season—and a toy industry in crisis.
