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Toy executives rally around CEO challenging Trump tariffs
At New York's recent Toy Fair, Rick Woldenberg, CEO of Learning Resources, drew attention as industry peers thanked him for suing the White House over sweeping import levies. The Supreme Court could rule on the case as early as Friday, keeping trade policy uncertainty alive for businesses.
Tariffs upended toy manufacturing last year
Donald Trump's abrupt tariff rollout in 2025 sent shockwaves through the toy sector, which relies heavily on Chinese factories. At one point, duties on Chinese goods soared to 145%, squeezing profits and forcing many companies to raise prices. While some firms shifted suppliers or absorbed costs, others passed expenses to consumers.
The White House later scaled back some tariffs, bringing the average duty on Chinese imports to around 20%. Despite the adjustments, industry leaders say the damage lingers.
Prices rose, but impact on consumers was uneven
Harvard Business School professor Alberto Cavallo, who tracks tariff effects on consumer prices, found that cheaper toys saw sharper price increases. However, overall toy prices remained relatively stable, with many companies avoiding further hikes this year as policy stabilizes.
Basic Fun CEO Jay Foreman said his company's profits fell 65% last year after raising the price of its Tonka truck from $30 to $35. "We're still on edge," he said, predicting continued uncertainty for at least three more years.
Companies brace for Supreme Court decision
Glo Pals, a sensory toy maker, increased its best-selling product's price by 20% last April-the first hike in six years. Co-founder Anna Barker called the economic environment "temperamental," warning that any tariff changes could disrupt plans to hold prices steady in 2026.
The White House has signaled it will pursue alternative tariff tools if the Supreme Court strikes down the current measures. A ruling against the administration could also force refunds of billions in collected duties, potentially allowing companies to lower prices.
"We're betting on further relief because of the lawsuit. We're trying to pass that back as quickly as we can."
Rick Woldenberg, CEO of Learning Resources
Some remain skeptical of relief
Not all businesses share Woldenberg's optimism. Tim Hislop, co-founder of UK-based Floss & Rock, said he isn't counting on refunds for tariffs already paid on U.S. imports, which make up over half his revenue. Still, he hopes a ruling against the tariffs could reduce future costs. "I have a little prayer every night," he joked.
