Toymakers and shoppers in the United States are finally seeing some relief after months of worry caused by high import taxes on goods from China. The recent drop in tariffs is especially good news for small businesses that depend on Chinese manufacturing and for families preparing for the holiday shopping season.
What Sparked the Price Hike
The US government had imposed a 145% tariff on Chinese imports as part of an ongoing trade war. This move caused prices of many imported goods—including toys—to shoot up. Even iconic brands like Barbie saw price spikes. One Barbie doll’s price jumped by nearly 43% in just one week, according to the Telsey Advisory Group.
Shoppers across the country were shocked, and many feared that gifts like toys would become too expensive this Christmas.
Good News for Toymakers
However, there’s now some hope. The US and China have signed a temporary trade deal, reducing tariffs from 145% to 30% for 90 days. This short-term relief has brought back confidence among small businesses.
David Mauro, owner of Jesusdoll.com, a company that makes religious talking dolls, said this change has made a big difference. His business depends on toy shipments from China and was badly hit by the earlier high tariffs.
“We’re a seasonal company, and Christmas is our biggest season,” Mauro told CBS News. “This gives us a chance to actually have products in stock and sell during the holidays.”
He had paused shipments from China due to the heavy tax, but with the new rate, he’s expecting $100,000 worth of inventory to arrive soon—just in time for Christmas.
Challenges Still Remain
Although the tariff has dropped to 30%, Mauro said it’s still not easy. The trade war has made business planning tough. “It can change on a dime,” he said, explaining how quickly trade policies shift.
He even considered shipping his products to countries like Canada, the UK, or Australia if the 145% tax stayed. But now, with lower tariffs, he’s bringing them back to the US to serve the domestic market.
Barbie Prices and Big Brands Affected
Toy giant Mattel, which makes Barbie and Hot Wheels, admitted in its earnings report that prices could keep rising. Even President Trump said dolls might cost “a couple bucks more”—and they already do.
As the situation unfolds, Mattel said it would continue adjusting prices based on the market. While some relief has come, brands are still cautious.
More Warnings Ahead
The toy industry isn’t the only one affected. Big retailers like Walmart and even fast food chains like McDonald’s are also warning about price hikes due to rising supplier costs.
Walmart’s CEO recently gave a blunt warning to customers, and McDonald’s may increase prices on popular items soon.
While the recent drop in tariffs has brought short-term relief to toy buyers and small business owners, the future still looks uncertain. Trade tensions can quickly return, and companies are preparing for all outcomes. For now, families can expect a slightly more affordable Christmas shopping season, but prices could rise again if the 90-day deal isn’t extended. As trade talks continue, both businesses and consumers are hoping for long-term stability.