The Toy Association warns that Trump's disastrous trade war threatens to hike up the cost of toys and 'irreparably harm' small businesses.
The Toy Association slammed Trump's escalating trade war with China on Tuesday, warning that the cost of toys will "sharply increase" if Trump follows through with his promise to increase tariffs on Chinese products to 25%.
"The return of a dark tariff cloud threatening the toy and retail communities," Steve Pasierb, president & CEO of the Toy Association, said in a statement. The tariffs are "nothing more than a tax on American families and their children," he added, saying Trump's decision "will lead to projected losses of tens of thousands of U.S. jobs."
By all indications, the Trump administration will increase tariffs from 10% to 25% on Chinese goods starting on Friday. As a result, not only will toys be more expensive, but families will also be forced to pay more for electronics, clothes and shoes.
"If the price goes up by 25% on a $10 toy, people aren't going to buy them," Pasierb told CNN.
Trump likes to lie about the who is paying for these tariffs, often falsely claiming China will foot the bill. But economists overwhelmingly agree that much of the cost is passed on to consumers.
"To be clear, China is not paying a penny of tariffs," Pasierb said in his statement, adding that "U.S. companies and American families are, through decreased profits and higher consumer prices."
The impact of Trump's trade war is already being felt by American consumers. Over the past year, the cost of washing machines has increased by about $100 per unit, costing American consumers about $1.5 billion.
Overall, economists estimate Trump's trade war is costing consumers about $3 billion every month.
The toy industry is concerned they will be forced to raise prices, and they are already worried about the damage Trump will cause to this year's holiday shopping season.
The tariffs will "cause irreparable harm to companies of all sizes — particularly American small businesses," Pasierb said.
Like a distorted version of Santa Claus, Trump is a fervent promoter of coal while keeping toys out of the hands of children.
Published with permission of The American Independent Foundation.