Here’s what parents need to know.
American toy shelves could look a lot emptier this holiday season—and it’s all part of President Donald Trump’s bold push to decouple the U.S. economy from Communist China. As new tariffs hit imports hard, toymakers are sounding the alarm, but conservatives say it’s a long-overdue correction to decades of globalist trade policy.
Small Businesses Struggle as Trump’s “America First” Trade Agenda Advances
A new survey from the Toy Association—representing over 400 companies—reveals just how deeply the tariffs are cutting. More than 80% of small U.S. toy makers have postponed or canceled orders due to rising costs from China. For mid-sized companies, the hit is even worse.
Many of these companies are now fighting to stay afloat, with nearly half warning they could go out of business within months if relief doesn’t come. Yet the Trump administration remains focused on long-term manufacturing independence—a win for American jobs, even if it stings in the short term.
“Maybe the children will have two dolls instead of 30,” President Trump said. “And maybe they’ll appreciate them more.”
Popular Toy Brands Hit Pause on Imports from China
Basic Fun!, the Florida-based company behind My Little Pony, Tonka Trucks, and Care Bears, has halted all Chinese shipments. CEO Jay Foreman warns that inventory will soon vanish from shelves.
“Consumers will find our toys in stores for a month or two—but after that, they’ll disappear,” said Foreman.
The company also produces nostalgic favorites like Lincoln Logs and Lite-Brite, all of which are now subject to tariff-driven price hikes.
Duncan Toys & Storytime Brace for Holiday Shortages
Duncan Toys, famous for the classic yo-yo, has also suspended shipments. CEO Josh Staph says the company’s products are designed in the U.S. but manufactured in China—like most in the industry. Now, 145% tariffs have stopped holiday inventory from even entering the country.
Storytime Toys, a Massachusetts-based educational toy maker, is also hitting the brakes. Founder Kara Dyer told The New York Times she’s waiting “two more weeks” for potential tariff relief—or her company may pause operations entirely.
“It wouldn’t make sense to continue. Manufacturing in the U.S. would drive prices too high for customers,” she said on Instagram.
Toy Association Issues Stark Warning: “Christmas Is at Risk”
Greg Ahearn, CEO of the Toy Association, told CNN that 96% of American toy businesses are small or mid-sized—and can’t absorb tariffs like major retailers can. “It’s untenable. Christmas is at risk,” he said bluntly.
Retailers are now canceling bulk orders, anticipating a storm of price increases and delayed shipments. But some American companies are seizing the moment.
Made-in-USA Toy Makers Thrive Under Tariff Policy
Simplay3, an Ohio-based manufacturer, is standing strong. “Our toys are made in the U.S., and our prices aren’t going up,” said Director Marshall Murdough on Fox News. “Shoppers can trust our price tags—online or in-store.”
Hasbro, the multinational toy giant, is already pivoting production away from China. CEO Jim Cramer told CNBC, “We aimed to cut Chinese sourcing to 40% by 2026—but we’re moving faster now.”
The Big Picture: A Shift from China to American Industry
While critics focus on short-term pain, supporters of Trump’s trade strategy see a much bigger win: restoring American industry and reducing our dependence on Beijing. Treasury Secretary Scott Bessent recently declared the current trade environment “unsustainable for China.”
As toy companies adjust, Americans may see fewer options this year—but many believe it’s a small price to pay to bring jobs and manufacturing back home.