Key facts
- Toy prices have increased by 6.6% in the last year.
- Toy prices rose 4.2% from August, seasonally adjusted.
- Tariffs on Chinese goods and higher oil prices are cited as reasons for the price surge.
US consumers are facing higher prices for toys this holiday season, with a 6.6% increase in the last year, according to the latest US consumer inflation data. This surge is attributed to a combination of tariffs on goods manufactured in China and rising oil prices, which impact the cost of petroleum-based plastics used in toy production. David Silverman, senior director at Fitch Ratings, noted that these dual issues are showing up in pricing and the impact from the Middle East war on commodity and shipping costs will persist.
President Donald Trump acknowledged in April 2025 that his tariff policies could increase consumer prices, a statement that drew backlash. While US tariffs on Chinese goods have eased since an initial 145% rate, falling to 30% in May 2025, and a recent agreement between the US and China aims to reduce tariffs on $30 billion each of imported and exported goods, current prices still reflect the fallout from higher rates. Jay Foreman, CEO of Basic Fun, stated that the toy industry used those rates last year to price goods for the current fall season.
Toy makers like Mattel and Hasbro have reported absorbing higher input costs. Mattel's CFO noted moderate inflationary pressures associated with events in the Middle East, while Hasbro's CFO mentioned absorbing higher input costs.