If President-elect Donald Trump forces toy makers to raise prices sharply – up to 56% – tariff proposal Is applied to foreign manufactured goods, according to report From the National Retail Federation.
According to a report from the US trade group this week, a $50 tricycle will rise to $78; Under the tax plan, the price of a $25 board game could rise to $39 and the price of a $17 plush toy could rise to $27.
Trump has called for a universal tariff of 10% to 20% on all imports from all countries into the United States and an additional tariff of 60% on all imports from China.
The idea is to create more manufacturing jobs in the US boost the economy By increasing exports. But some experts are concerned This could lead to inflation A trade war broke out here and retaliatory tariffs were imposed on exported American goods.
“There is no manufacturing base for toys in America anymore,” Jay Foreman, chief executive of Basic Fun, maker of the Care Bears and Lincoln Logs, told The Post. “What can we do?”
Trump has Threatened to slap American companies like John Deere With higher taxes on transferring jobs abroad.
Foreign sales of U.S. agricultural goods, whiskey, orange juice and even motorcycles declined after the European Union, China and other governments imposed tariffs on those goods four years ago.
According to the report, prices of other consumer goods including furniture, home appliances, shoes and travel accessories will also be higher.
According to the report, the tariffs would cost consumers an additional $46 to $78 billion, or $362 to $624 per household for just those six product categories.
The report found, “We find that the additional costs associated with these proposed tariffs will be too large for U.S. retailers to bear and, when passed on to consumers, will exceed prices many consumers are willing or able to pay. There will be prices.”
“Some consumers will stop buying goods and demand will fall,” according to the report.
Home appliances could cost 31% more, the NRF reports, with a basic refrigerator that costs $650 today rising to $852 or a $40 toaster oven going to $52.
According to the report, shoe prices will also increase by 29%, with $90 sneakers rising to $116 and women’s $48 slippers rising to $62, while $119 handbags will cost $26 more. .
By another measure, American households could lose between $1,900 and $7,600 in disposable income, according to the Budget Lab, a policy research center at Yale University.
The toy industry is uniquely vulnerable because most toys are made in China, according to the report released Monday, titled “Estimated Impact of Proposed Tariffs or Tariffs on Imports.”
Basic Fun’s Tonka Mighty Dump Truck, for example, currently sells for $30, but with the 60% tariff it will sell for $45, Foreman said.
