Key facts
- Nearly 80% of toys imported into the US are made in China.
- A $30 toy costs approximately $7.35 to manufacture, ship, and clear US import tariffs.
- US companies, distributors, and retailers retain over 75% of the final retail price of a toy.
- Chinese toy factories typically operate on profit margins of 3% to 10%.
The majority of toys sold in the US are manufactured in China, with nearly 80% of imports originating from there in 2024. The process begins in factories like Mihox in Guangdong province, where toys are produced from customer designs. This manufacturing stage accounts for about 20% of the final US retail price, with factories typically earning a 3-10% profit margin. After production, toys are shipped via ports like Shenzhen, with transit times to the US coast ranging from 15 to 30 days, adding about 10% to the cost. Upon arrival, a 12.5% import tariff is applied to the manufacturing price, paid by the US importer. The remaining portion of the retail price stays in the US, covering domestic logistics, the toy company, and the retailer, who often share the revenue equally.