The plot is like any of a dozen or more Christmas movies you may have seen. A villain either steals all the presents or gets in the way of Santa’s routine, and suddenly it appears there will be no gifts under the tree.
Only, this time it’s not clear whether any hero can swoop in and save the day. No hastily organized singing of Christmas songs in Central Park can make the reindeer fly higher than the 145% tariffs the White House has imposed on the largest supplier of Christmas in the United States — China.
Only, this time it’s not clear whether any hero can swoop in and save the day. No hastily organized singing of Christmas songs in Central Park can make the reindeer fly higher than the 145% tariffs the White House has imposed on the largest supplier of Christmas in the United States — China.
Turns out China makes nearly everything — 80% of the toys and 90% of the other goods, according to the New York Times — that Americans use to celebrate Christmas.
Grant Prigge, who heads the company that makes the air-purifier Mila, put it bluntly to the Wall Street Journal this week. Unless Donald Trump’s high tariffs on China come down, “there will be no Christmas,” he said.
Queue the ominous music. Scan the worried faces.
He added, “Everything you’re buying today was imported pretariffs. But those warehouses will run out in the next 30 to 90 days.”
He’s not alone in sounding the alarm. Major news outlets have carried the same story in recent days. Former Trump advisor and current IBM Vice Chairman Gary Cohn told CBS’ “Face the Nation” on Sunday, “(Retailers) who are ordering their toys for Christmas today ... those toys are coming with a massive 145% tariff. The vast majority of small-business toy stores cannot order toys today because they cannot afford the 145% tariff.
“So, they’re making a conscientious decision. They’re either going out of business, or they’re just going to wait to see what happens.”
And all those parents and grandparents out there hoping for some magic Christmas morning without the Grinch? Well, they might want to start secretly crafting something homemade in their garages, or think about regifting something they’ve been hanging onto since childhood.
Why are people talking about Christmas in early May? Because a lot of small toy manufacturers have to place orders with Chinese factories today in order to receive shipments in time for the holiday season. Given the speed with which things change in Washington, they don’t know whether the tariffs will still apply once those orders reach American ports. As one owner told the Times, she already has placed a small, $30,000 order to China, but she may have to pay $45,000 for it in tariffs alone, when it arrives. If the tariffs aren’t reduced soon, she won’t take a chance on a larger order. “It wouldn’t make any sense.”
Meanwhile, in Washington, President Trump said on Wednesday that children might “have two dolls instead of 30 dolls,” but that China would suffer more.
However, this is about more than the children.
The Toy Association, which represents more than 900 toy manufacturers, released a survey in April that found “nearly half of small and medium-sized enterprises state they may soon go out of business due to the current U.S. tariff policy.”
Not surprisingly, the association said on its website that it “will be using these results to aggressively advocate for a tariff exemption for toys and ensure the voice of the toy industry is heard by congressional leaders and White House officials.”
If that doesn’t happen soon, experts are predicting shortages, long lines and high prices for toys this fall. Some are turning to suppliers in other countries, such as Vietnam. But shipping costs are rising because demand has increased in countries other than China, where tariffs are on a three-month pause.
Uncertainty, the bane of business owners, reigns supreme.
Of course, it may not be such a bad thing to force Americans into dialing back the commercialism of the holiday season and focusing more on the true meaning of the holiday. Thoughtful, handmade gifts could brighten Christmas as never before.
It’s just that, seven months before the big day, many Americans may be unaware of what’s coming, and that this is an unfolding Christmas tale without a foreseeable Hollywood ending, especially for small businesses that sell toys.
Grant Prigge, who heads the company that makes the air-purifier Mila, put it bluntly to the Wall Street Journal this week. Unless Donald Trump’s high tariffs on China come down, “there will be no Christmas,” he said.
Queue the ominous music. Scan the worried faces.
He added, “Everything you’re buying today was imported pretariffs. But those warehouses will run out in the next 30 to 90 days.”
He’s not alone in sounding the alarm. Major news outlets have carried the same story in recent days. Former Trump advisor and current IBM Vice Chairman Gary Cohn told CBS’ “Face the Nation” on Sunday, “(Retailers) who are ordering their toys for Christmas today ... those toys are coming with a massive 145% tariff. The vast majority of small-business toy stores cannot order toys today because they cannot afford the 145% tariff.
“So, they’re making a conscientious decision. They’re either going out of business, or they’re just going to wait to see what happens.”
And all those parents and grandparents out there hoping for some magic Christmas morning without the Grinch? Well, they might want to start secretly crafting something homemade in their garages, or think about regifting something they’ve been hanging onto since childhood.
Why are people talking about Christmas in early May? Because a lot of small toy manufacturers have to place orders with Chinese factories today in order to receive shipments in time for the holiday season. Given the speed with which things change in Washington, they don’t know whether the tariffs will still apply once those orders reach American ports. As one owner told the Times, she already has placed a small, $30,000 order to China, but she may have to pay $45,000 for it in tariffs alone, when it arrives. If the tariffs aren’t reduced soon, she won’t take a chance on a larger order. “It wouldn’t make any sense.”
Meanwhile, in Washington, President Trump said on Wednesday that children might “have two dolls instead of 30 dolls,” but that China would suffer more.
However, this is about more than the children.
The Toy Association, which represents more than 900 toy manufacturers, released a survey in April that found “nearly half of small and medium-sized enterprises state they may soon go out of business due to the current U.S. tariff policy.”
Not surprisingly, the association said on its website that it “will be using these results to aggressively advocate for a tariff exemption for toys and ensure the voice of the toy industry is heard by congressional leaders and White House officials.”
If that doesn’t happen soon, experts are predicting shortages, long lines and high prices for toys this fall. Some are turning to suppliers in other countries, such as Vietnam. But shipping costs are rising because demand has increased in countries other than China, where tariffs are on a three-month pause.
Uncertainty, the bane of business owners, reigns supreme.
Of course, it may not be such a bad thing to force Americans into dialing back the commercialism of the holiday season and focusing more on the true meaning of the holiday. Thoughtful, handmade gifts could brighten Christmas as never before.
It’s just that, seven months before the big day, many Americans may be unaware of what’s coming, and that this is an unfolding Christmas tale without a foreseeable Hollywood ending, especially for small businesses that sell toys.
RSS Feed
