New USA tariff policies are impacting imported goods, which affect nearly every consumer market. Toys are no exception, and lately, we've been asked about how our shop is affected.

This has been interesting to navigate, to say the least. PlayMatters sources high-quality toys from all over the world, including Spain, France, Canada, Sweden, Vietnam, and China. Many of the brands we carry design their toys to an incredibly high safety and quality standard and then have the items produced overseas to take advantage of sophisticated production capacity and lower labor rates. Tariffs are fees those brands must pay to bring their toys to our shores. If those fees are passed on to wholesalers, who pass them on to retailers, this increases the prices consumers pay.

As of this writing, most countries face a 10% tariff on all goods, with some countries facing higher rates. The U.S. and China agreed to a 90-day pause on tariffs, with the U.S. cutting its total tariff rate on Chinese imports from 145% to 30%, according to NBC News. 

Right now, most of our wholesalers are passing along moderate cost increases, but they are trying to absorb as much of the increased cost as possible, for as long as they can. Also, our toy suppliers are striving to sell as much as they can of the inventory that was already here in the USA. This is creating high demand for product that was already on-hand. The concern is that as prices rise, toy wholesalers will not want to import goods from high-tariff countries, which could create shortages around the holidays. 

Despite these conditions, things look and feel pretty normal in our shop. This is mostly because we've adapted in several ways, always working as hard as we can to protect our customers. First, we're monitoring toy prices at big box stores and other competitors to keep our prices in line with the market. Second, we're exercising a lot more scrutiny on the toys we buy, looking for lower cost, high-quality alternates to toys whose prices have increased; we never compromise on quality. Lastly, we're buying ahead of the holiday rush to ensure we have plenty of toys to take us into the next two quarters of the year. 

While there is a lot of uncertainty in the toy business at this moment, one thing's for sure: PlayMatters will have plenty of fun for your family in stock, now, and throughout the rest of the year.

Our entire PlayMatters family thanks you for your continued patronage and support. We are looking forward to a fun-filled year of toys, learning, and moments that bring people together.

Thank you for shopping local with us!