The toy market was worth $114.4 billion in 2024, according to a report from Research and Markets, and it’s forecasted to nearly double by 2034, reaching $203.1 billion.
However, the tariffs pose a roadblock to that plan. The reason is simple: nearly 80% of toys imported into the United States come from China. That leaves toymakers with some difficult options: absorb the costs of the imports, or pass them on to the consumer.
MGA Entertainment is the largest privately held toy manufacturer in the U.S. and is the brand behind many of the popular toys you see on store shelves, including Bratz, L.O.L. Surprise, and Little Tikes. But thanks to the tariffs, CEO Issac Larian is facing some hard decisions.
“Frankly, if these tariffs do not go away, we have no choice but to do layoffs,” he said in an interview with Retail Dive.
Large toy companies are being affected as well. Mattel announced in March that it would lay off about 35% of its manufacturing workforce.
https://www.msn.com/en-us/money/markets/tariffs-will-devastate-this-entire-industry/ar-AA1EfMvd