Games and toys are particularly susceptible to tariff-related price increases since the majority of those sold in the U.S. are made in China, according to industry trade group The Toy Association.
The tariff rate the Trump administration imposed on Chinese goods became a roller coaster that started at an additional 10%, peaked at 145% and ended up at 47%.
The uncertainty made it hard for toy shops to decide what to order for the holidays.
Dean Smith, who co-owns independent toy stores JaZams in Princeton, New Jersey, and Lahaska, Pennsylvania, says the manufacturers in China that he buys toys from did not pass on their tariff costs all at once but he has seen prices inch higher with every reorder.
Smith estimates that wholesale prices for 80% of his inventory went up anywhere from 5% to 20%. Some shoppers who don’t buy toys regularly might be surprised by price increases he adopted in turn, Smith says. A doll that sold for $20 to $25 last year now costs $30 to $35 at JaZams, he says.
