Business
How Trump’s Tariffs on China Are Affecting Toy Companies
At the biggest toy industry trade show in the Western Hemisphere this weekend, toy makers, as usual, displayed seemingly endless rows of stuffed animals, action figures and puzzles, hoping to entice retailers to pick their products.
But this year, the chatter at Toy Fair New York was dominated not by the next Barbie, but a larger game, one of global tactics, that could make most toys more expensive for U.S. consumers.
Almost 80 percent of toys sold in the United States are made in China. Last week, just as toy vendors from across the United States and dozens of other countries started to flock to the Jacob K. Javits Convention Center for the annual toy fair, President Trump announced a 10 percent tariff on Chinese goods that would come on top of the 10 percent he already imposed a month ago.
Companies big and small — from family-owned brands to household names — are trying to figure out how to manage the new costs related to tariffs. Stationed at a booth lined with plush stuffed animals, Linda Colson, the vice president of sales at Mary Meyer Corporation, said her company, based in Vermont, was in a state of paralysis over pricing. “We don’t know what to do,” she said. “I think a lot of people in this building are just waiting to see what everybody else is doing.”
Jay Foreman, the chief executive of Basic Fun, a toy manufacturer and distributor in Florida, sells to retailers including Walmart and Target. After Mr. Trump ordered the 10 percent tariff on China in February, Mr. Foreman started thinking of ways to avoid passing those costs onto his customers. So last Wednesday, he met with his company’s board of directors to devise a plan that would split the burden: the company, its factories in China and its retail customers would each absorb 3.5 percent of the added cost.
But just hours later, Mr. Foreman tuned into CNBC and heard Mr. Trump declare that new tariffs on China could jump to a total of 20 percent this week. The company’s plans “went right out the window,” said Mr. Foreman, whose company employs about 110 people in the United States and a total of 165 people globally.
“Now, those can’t be absorbed, and that additional tariff has to be passed onto the consumer,” he added. “It tipped the domino.”
The Tonka Mighty Dump Truck, which Basic Fun makes under a license from Hasbro, currently retails for $29.99. That price will probably increase between $5 and $10 for consumers, Mr. Foreman said.
Some of the bigger companies at the convention expressed confidence that their Chinese suppliers would absorb a portion of the added costs, as factories would not want to lose business.
Safari, which sells animal figurines, produces about 90 percent of its products in China, said Danny Falero, the company’s director of marketing, and manufacturers have said they are willing to make some concessions. He emphasized that his company did not intend to raise prices unless Mr. Trump’s policies went into effect.
“It’s slightly theater, so let’s see what actually lands, and then we’ll make adjustments based on that,” Mr. Falero said.
Looming tariffs were weighing heavily on Luis Prior, who owns Meavia Toys, a small company in Corbin, Ky. His three-year-old business designs sensory toys for children with special needs and are sold to teachers, hospitals and museums.
Mr. Prior said that regardless of whether tariffs on China stayed at 10 percent or doubled on Tuesday, he would have to raise his prices. But the uncertainty has made it impossible to make any specific pricing decisions, he said. When he returns home from the convention this week, Mr. Prior plans to go through his products, item by item, and reassess.
“Exhaustion,” Mr. Prior said. “That’s the only way I can describe it.”
Three billion toys are sold in the United States each year, generating $42 billion in sales and supporting nearly 700,000 jobs, according to the Toy Association, a trade group representing the U.S. toy industry.
The association has been lobbying for an exemption from Mr. Trump’s broad tariffs, pointing in part to the fact that small businesses make up roughly 96 percent of the industry, said Greg Ahearn, the group’s chief executive. During Mr. Trump’s first term in the White House, he had imposed 10 to 25 percent tariffs on many Chinese products — but he backed down from tariffs on toys, among other consumer goods.
While most toys are made in China, some manufacturing has moved to Mexico in recent years, but Mr. Trump also said that the 25 percent tariff he had imposed on Mexico and Canada would go into effect on Tuesday.
The Toy Association has been visiting senators’ offices and pushing to get its message to people inside the Trump administration, Mr. Ahearn said, as well as communicating with its members daily to share the latest updates on tariffs.
Mr. Trump’s announcement of an additional tariff on China coincided with Mr. Ahearn’s preparations for the Toy Fair. “It wasn’t good, and now it’s unbearable for us as an industry,” Mr. Ahearn said, adding that a 20 percent tariff will inevitably be passed onto consumers.
In an interview with CNBC on Monday, the White House trade adviser, Peter Navarro, doubled down on Mr. Trump’s tariff plans, saying their effect on consumer prices would be “second order small” when taking in account the administration’s simultaneous plans to deregulate industry, reduce the size of the federal government and expand energy production.
“I don’t see the president wavering on any of this,” he said.
Five years ago, Sharon Azula and her husband started a company called the Tooth Brigade selling tooth-fairy pillows. Last summer, they lowered the retail price for a pillow — a small stuffed animal with a tooth pouch — to $14, down from $16, which helped boost demand.
Tariffs, especially if they amount to 20 percent, are likely to force Ms. Azula to raise prices again, since everything they sell is manufactured in China. When they started the brand, she and her husband wanted to manufacture their products in the United States, but it was too expensive, she said.
Now, motioning to a pillow at her Toy Fair booth, Ms. Azula said she was worried that higher prices could sink the business.
“When I’m here, I try not to think about it,” she said, tearing up. “But when you try to think about what the future is going to be — I don’t know. I just don’t know.”
The Kars4Kids jingle is back on the air in California after being ordered off the airwaves last month.
The catchy jingle that has been getting stuck in heads for nearly three decades was pulled from the air after a California man took Kars4Kids to court for false advertising.
The man said he donated an old car to the charity, believing it would be used to benefit children in need. He was unaware that Kars4Kids gives the donations to another organization, Oorah, that uses the money to fund Jewish youth trips to Israel.
The Orange County court originally ruled the jingle a violation of California’s false advertising law for failing to disclose its religious affiliations, and it was subsequently pulled from the airwaves. Kars4Kids filed an appeal, and the court has ruled the jingle can stay on the air throughout the appeals process.
“Kars4Kids applauds today’s court ruling allowing its ads to continue airing in California while the appeals process continues,” a spokesperson for Kars4Kids said. “The uninterrupted airing of its ads will enable the charity to continue funding its programs for children and families. We believe the lower court’s findings on the facts and the law were deeply flawed, and we look forward to pursuing a broad appeal of that decision.”
Kars4Kids has run into allegations of false advertising before. Oregon and Pennsylvania also took the charity to court over the misleading jingle in 2009, resulting in a $130,000 fine and a requirement to disclose its affiliations in all advertisements.
A Kars4Kids spokesperson said last month that its website clearly states its Jewish affiliation.
“We believe this case was nothing more than a lawyer-driven attempt to siphon off charitable funds for their own gain,” the spokesperson said. “The law and the facts are clearly on our side.”
The nonprofit using the funds gathered by Kars4Kids has also previously used the donations for a matchmaking program for Jewish young adults and to purchase a $16.5 million building in Israel.
While the jingle could be pulled from the air again depending on the result of the appeal, for now, it will remain a part of your morning commute in California.
Texas has dethroned California as the state with the most Fortune 500 companies.
The Fortune 500 list ranks the largest U.S. companies by revenue. This year, 57 of the top companies are headquartered in Texas, compared with California’s 56. It’s a reversal from two years ago when the Golden State had the pole position.
The Lone Star State was quick to claim the victory.
“Texas is the undisputed headquarters of headquarters,” Texas Gov. Greg Abbott said in a news release responding to the ranking, which was announced Wednesday. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”
California’s corporate haters say they try to avoid the state’s high costs, income taxes and strict regulations, but the western state is still a top money maker.
“California dominates on nearly every other measure: its Fortune 500 companies are the most profitable ($647 billion), most valuable ($20 trillion), and employ more people than any other state (2.8 million workers),” Fortune said in a news release.
Indeed, despite the naysayers, Californian companies have been leading the world in developing artificial intelligence technology as well as the latest in space and defense tech.
The state is home to nearly 400 “unicorns,” or billion-dollar startups — more than any other state, according to CB Insights. It also gobbled up nearly two-thirds of U.S. venture capital last year, with San Francisco Bay Area startups such as OpenAI leading the way, according to the business information platform Crunchbase.
Texas and California have been in a tug-of-war for the crown. In 2024, after a decade, California bagged the top spot with 57 companies on the list, while Texas and New York tied in second with 52 companies each.
Healthcare giant McKesson, and oil companies Exxon Mobil and Chevron, were the top three Texas companies on the list. Apple, Alphabet, and Nvidia took the top positions in California.
Tesla, which relocated to Austin from Palo Alto in 2021, ranked 43rd on the list. Other major Fortune 500 companies that left California included Oracle, Charles Schwab and Chevron.
California’s population exodus has yet to fully recover from the pandemic times in 2020. The state’s high cost of living and regulatory environment are often cited as reasons for residents opting to move.
More recently, California’s proposal for a one-time tax on billionaires prompted some, including Peter Thiel and Larry Page, to open new offices outside the state.
Some smaller companies are also leaving the state, but nearly the same number are being set up. From 2011 to 2021, the state lost a net 2% of its total of around 47,000 headquarters, according to the Public Policy Institute of California.
“There is some indication of an uptick in headquarters leaving California, but it is really small in comparison to other firm trends,” said Sarah E. Bohn, vice president of the Public Policy Institute of California. “The rate of leaving is slightly higher among bigger firms.”
Bohn, in a recent report, cautioned that focusing solely on relocations overlooks the range of positive and negative forces driving headquarters activity and can misrepresent businesses’ desire and ability to operate headquarters in California and the broader impact on jobs.
Behind Texas and California was New York, home to 53 Fortune 500 companies this year. The fourth spot was tied between Illinois and Ohio, with 29 companies each.
Amazon was the top company on the list, ending Walmart’s 13-year reign at the top of the annual Fortune 500 companies list. Amazon’s 2025 revenue was $716.9 billion, compared with Walmart’s $713.2 billion.
Seattle-headquartered Amazon joined Exxon Mobil, General Motors, and Walmart as the only four companies to have ever held the top position since Fortune began publishing the data in 1955.
Together, the 500 companies on the list roped in $21 trillion in revenue and $2.1 trillion in profits last year, employing 30.5 million people worldwide.
Nearly 2,000 food and beverage workers at SoFi Stadium voted overwhelmingly Friday to authorize a strike just a week before the venue will stage the first World Cup game on U.S. soil in more than three decades.
Negotiations on a labor contract between Unite Here Local 11, the union representing the cooks, dishwashers, concession workers and bartenders at SoFi and, Legends Global, the stadium’s food-service operator, are expected to continue Monday despite the vote. But Kurt Petersen, the union’s co-president, said if an agreement isn’t reached workers will walk off the job and the 70,000 fans arriving for the June 12 match between the U.S. and Paraguay will be greeted by hundreds of picketers.
Union members have been working without a contract for a year and Petersen said Unite Here is demanding salary increases, protection against subcontracting and job loss through automation, and are protesting the collection of sensitive private information such as nationality and home addresses that FIFA, organizer of the World Cup, said it needs to accreditate workers.
Workers are also demanding the right to walk off the job if federal immigration enforcement enters the stadium and creates a reasonable fear for their safety. Ninety-six percent of the vote was in favor of strike authorization.
Legends Global, the stadium’s food-service operator, responded to the vote with a statement.
“Legends Global has presented progressive wage proposals to Unite Here Local 11 throughout our negotiations and remains confident an agreement is within reach,” it read. “While we expect a contract will be finalized in time, a contingency staffing plan is in place to ensure seamless operations and no disruption to fans. We remain committed to delivering an outstanding hospitality experience at the FIFA World Cup matches.”
That contingency plan would involve hiring replacement workers who would have to undergo the same detailed accreditation procedures demanded by FIFA, plus job training. SoFi Stadium is scheduled to play host to eight World Cup matches, including two of the U.S. team’s three group-stage games. The first of those is on June 12 when the U.S. faces Paraguay in its World Cup opener.
Petersen said the union is looking for “substantial increases” in hourly pay, to more than $30 an hour. Legends’ most recent proposal calls for wage freezes for some workers and a 25-cent hourly increase for cooks and dishwashers, the union said.
But perhaps the biggest sticking point is FIFA’s demand for workers’ sensitive personal information, including Social Security numbers and fingerprints, to process background checks. Under California privacy laws, workers have the right to know exactly what personal information their employer collects, how it will be used, and who it will be shared with. Local 11 said its members fears such information, if collected, could be made available to the Department of Homeland Security and ICE.
According to Petersen, when workers were originally hired by Legends they submitted the documentation necessary for employment, and under the current collective bargaining agreement the company does not have the right to request it again for FIFA.
FIFA has refused to comment on the contract talks, saying they are “between Legends Global and Unite Here Local 11.” But its insistence on collecting personal information is something Legends cannot address during contract talks, which makes a resolution impossible.
FIFA said it was partnering with the governments of the U.S., Canada and Mexico, the three countries in which the 39-day tournament will be played, “to enhance safety and security of all workers, staff, team members, vendors, journalists, volunteers, and spectators by mitigating potential insider threats. … Such name checks do not constitute pre-employment checks.”
All data collected during the name-check process, FIFA said, will be processed “in accordance with applicable data protection and privacy laws, and will be deleted by FIFA as soon as it is no longer needed for purposes of adjudicating requests for credentialed access to FIFA-controlled spaces.
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