US toy prices may rise d上海后花园e to additional tariff

Experts warn it would damage small companies as consumers pay for the hit

上海后花园For the US toy industry, President Donald Trump’s threatened 10 percent tariff on

an additional $300 billion worth of Chinese goods starting from Sept 1 would come during the peak holiday shi上海后花园女神会所

pping month, when many Chinese toy manufacturers send their products to the United States.

上海后花园Though some US toy companies have come up with contingency plans, like lowering their relian

ce on manufacturing in China, many will still make the US consumer pay more if the tariffs hit.

“Hasbro will have no choice but to pass along the increased costs to our US custo上海后花园

mers,” said Brian Goldner, CEO of toy company Hasbro. He said the Pawtucket, Rhode Islandbased company, the

上海后花园女神会所maker of popular products such as Monopoly and GI Joe, was working to reduce its reliance on manufacturers in Chi

na, but he also said it has built up extra inventory, incurring additional storage costs, as it braces for tariffs.

It’s hard to tell whether companies will alleviate the impact of a new tariff before the holiday season arrives, Linda Bolton We上海后花园

iser, a senior research analyst at financial services firm D.A. Davidson Companies, told China Daily.

上海后花园女神会所But she said that they will try to find alternative suppliers, and work with their procurement teams to optimize product mix

and sourcing options. Many also will continue to move manufacturing from China to countries like Vietnam.

“They will do as much as they can to mitigate or offset the impact of the tariffs through all the different measures, but it’s un上海后花园

certain now to what extent they will be able to either partially or fully offset the impact,” Weiser said.

上海后花园女神会所”The good news is that the tariff is only 10 percent, so a product-price increase of 5 percent is neede

d to keep gross profit dollars unchanged. However, the gross margin would decline,” she said.

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