Impact of China tariffs will be passed on to American consumers

 

About 80% of toys sold in the United States are made in China.

Signage:  Big Boy Sign Generator

Headline:  New York Times, 3/3/2025

Danielle Kaye reports:

Jay Foreman, the chief executive of Basic Fun, a toy manufacturer and distributor in Florida, sells to retailers including Walmart and Target. After Mr. Trump ordered the 10 percent tariff on China in February, Mr. Foreman started thinking of ways to avoid passing those costs onto his customers. So last Wednesday, he met with his company’s board of directors to devise a plan that would split the burden: the company, its factories in China and its retail customers would each absorb 3.5 percent of the added cost. 

But just hours later, Mr. Foreman tuned into CNBC and heard Mr. Trump declare that new tariffs on China could jump to a total of 20 percent this week. The company’s plans “went right out the window,” said Mr. Foreman, whose company employs about 110 people in the United States and a total of 165 people globally. 

“Now, those can’t be absorbed, and that additional tariff has to be passed onto the consumer,” he added. “It tipped the domino.” [emphasis added]

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