By Gary Symons
TLL Editor-in-Chief
The U.S. and Chinese toy industries got an early Christmas present, as China and the United States agreed to lower tariffs on $30 billion worth of goods, including $9.8 billion worth of toys.
The Toy Association says it’s thrilled by the news, calling it a “historic development.”
“The toy industry is pleased that toys have been designated as a category of non-sensitive goods under the U.S.-China Board of Trade framework. This marks a historic win for American toy companies — 96% of which are small businesses — and families, especially as we approach the holidays,” said Greg Ahearn, president and CEO of The Toy Association. “Our mission is to advocate for the global toy industry, and inclusion of toys on the Board of Trade list is a testament to our ongoing work benefiting the entire toy community.”
The proposed changes to tariffs came out of China’s state visit to the United States on Sept. 25, when President Donald Trump and President Xi Jinping announced an agreement under the U.S.-China Board of Trade. It calls for more favorable tariff treatment for $30 billion of “non-sensitive goods” flowing in each direction between the two countries.
For U.S. importers, that list includes 77 product categories such as small appliances, holiday decorations and children’s car seats. However, the single largest exemption has been carved out for the toy industry, with $9.8 billion of products earmarked for tariff reductions; almost one-third of the total.
The Toy Association had urged the Trump administration to include toys in its list of non-sensitive goods, noting that lowering tariffs would bring significant benefits to American companies and consumers, as toys pose no national security concern and are highly price-sensitive purchases for American families.
A 2024 economic impact study by John Dunham & Associates, commissioned by the Toy Association, found that the U.S. toy industry generates $155.7 billion in annual economic impact and supports approximately 661,800 jobs. While the U.S. is home to some of the world’s largest toy companies, 96.7% of toy manufacturers, wholesalers and distributors are small businesses.
Toys also enjoy a historical precedent for open trade, after the 1994 Uruguay Round of GATT established a zero-for-zero tariff approach for the category.
On Sept. 26, the White House announced that toys are among the non-sensitive goods designated for preferential tariff treatment under the new framework, paving the way for significant tariff relief. While the final tariff adjustment has not yet been confirmed, Chinese officials indicated that more than 90% of the products covered by the Board of Trade framework could return to most-favored-nation (MFN) tariff rates, including select toys and games.
The Toy Association says that’s a huge deal for the U.S. industry. China accounts for roughly 73–78% of U.S. toy imports based on 2024 trade data from U.S. International Trade Commission and the Observatory of Economic Complexity.
“As we await confirmation from the U.S. government regarding new tariff rates for toys, we would like to thank the Administration and USTR [the Office of the U.S. Trade Representative] or recognizing the unique nature of the toy supply chain,” said Kathrin Belliveau, chief legal and policy officer at The Toy Association. “We appreciate President Trump’s commitment to protecting American families and preserving children’s access to the essential benefits of play.
“The new U.S.-China trade framework will ensure toys are available and affordable for American families this holiday season and beyond.”
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