From the Editor: Trump, Tariffs, Layoffs
Hey, toy collectors and industry watchers! James Zahn’s latest editorial in The Toy Book, dropped on March 21, 2025, is a gut-punch look at the toy biz—and it’s not pulling any punches. Titled “Trump, Tariffs, Layoffs, & Price Hikes,” it’s a raw take on a year where playtime’s anything but fun. Shoaib, this is a must for cutitoy.com—let’s break down the chaos and what it means for your shelves.
A Decade of Bruises—and 2025’s Kicking It While It’s Down
Zahn’s not mincing words: the toy industry’s been through hell. Toys “R” Us folded in 2018, the China-U.S. trade war hit in 2019, COVID wrecked 2020-2023, supply chains choked in 2021-2022, and inventory piled up in 2023-2024. Now, 2025’s piling on with soaring inflation and cratering consumer confidence. “You’d be hard-pressed to find another segment of the consumer products space that’s faced more challenges,” Zahn writes—and he’s right. This isn’t news to insiders, but he’s shouting it for the outsiders—consumers, politicians, Trump’s crew—who don’t get the stakes.
Enter the big bad: tariffs. At NY Toy Fair this month, “Trump tariffs” were the buzzword as new China levies kicked in—smacking the industry’s manufacturing heart. Retailers like Walmart are leaning on vendors for discounts to dodge the hit, with Beijing even calling Walmart in for a chat, per The Wall Street Journal. Some companies are slapping 10%+ “Tariff Surcharges” on invoices; others, like Hasbro and Mattel, are shifting to Vietnam or India. But here’s the kicker—none of it’s returning to the U.S.
Tariffs: A Fantasy Fix That Breaks More Than It Builds
Zahn’s blunt: tariffs won’t “level the playing field.” Toys aren’t steel—there’s no U.S. factory network to flip on. Reshoring’s a pipe dream—billions and years to build from scratch, plus EPA rules would snarl it up. Job creation? Forget it. Most U.S. toy production (think Little Tikes in Ohio) is automated or niche; the big stuff’s been offshore since the ’80s. Even if factories popped up, who’d work them? Factory towns are ghosts now. Instead, tariffs jack up prices—punishing families already stretched thin—and risk American jobs tied to global chains: designers, marketers, truckers, warehouse crews.
The proof’s in the layoffs. Mattel’s cutting 120 jobs in El Segundo—after expanding there last year. Jazwares (Squishmallows) is trimming too, spinning it as “efficiency” while thanking the axed. Zahn’s skeptical—tariffs might be a real trigger, but they’re also a handy excuse for cuts, just like COVID was during a growth spurt. Either way, it’s bleak—fewer sales, markdowns, canceled orders. Small fries might fold; big players like Mattel will soft-sell “workforce reductions” to shareholders.
A Plea for Sanity
Zahn’s “America first” stance isn’t blind—he wants smart leadership, not knee-jerk tariffs that tank a global ecosystem built over decades. “Toys should be tariff-free,” he argues, because hiking costs in a squeezed economy kills smiles—the industry’s whole gig. Shoaib, your readers feel this: that $24.99 Marvel Legends figure might creep to $30, and Coyote’s $9.97 Walmart deal could vanish if this drags on. Collectors stock up now—prices are only going up.
What’s your take? Are tariffs a misguided mess or a tough pill worth swallowing? How’s this hitting your toy hunts? Let’s hear it—this industry’s fighting to play another day, and it’s a hell of a story!
