Several people asked me why I didn’t mention tariffs in my review of the New York Toy Fair last week. Predominantly, this was because I was already over the wordcount – and the tariff situation isn’t something you can sum up in a brief paragraph. In addition, I was – and remain – concerned that anything I write about tariffs on a Thursday afternoon could be superseded by new developments by the time the Blog is posted on Friday morning.
I was surprised at one of Trump’s advisors getting upset with a Sky News reporter for making this very point earlier this week– despite all obvious evidence to the contrary, senior trade advisor Peter Navarro denied that Trump is “changing his mind by the hour”, repeatedly calling the assertion “crap” and claiming instead that the President is “negotiating strategically.” I guess some people might choose to believe that – like many, I remain unconvinced that the current catalogue of chaos represents a strategic approach rather than impulsive, knee-jerk behaviour.
This week, all steel and aluminium imports to the US were slapped with a 25% tariff. China had already retaliated to its tariff being doubled from 10% to 20%, while Canada and the EU have also both implemented retaliatory measures. The UK has chosen not to resort to reciprocal punitive tactics just yet, but who knows what could happen in this ever-evolving scenario.
Navarro also repeated the “no exemptions, no exclusions” policy – which will undoubtedly come as a disappointment to the Toy Association over in the US, as it gears up to present its case to the US government that toys should be exempted from the China tariff implementation. There is historic precedent for this, as toys were exempted the last time tariffs reared their ugly head in 2018. But will it be different this time round?
There is certainly a strong case for toys to be excluded, not least because increasing toy prices could potentially drive parents – especially those struggling to make ends meet as multiple costs soar in the US – towards cheap, potentially unsafe or counterfeit imports available on certain online platforms. Toys play a critical part in childhood development, so the tariffs will certainly do a disservice to children and parents. In addition, tariffs are surely going to be bad for small US businesses, will almost certainly cause unemployment and will impact the businesses and consumers doing the right thing, instead benefitting the ones potentially cutting corners. And, ultimately, it’s not as if toys have any geo-political significance.
The Toy Association is wasting no time, bringing in new chief policy officer Kathrin Belliveau (who spent 25 years at Hasbro) and hiring two separate outside groups – one in Florida with ties to the Trump administration and one in Washington DC – to start lobbying on behalf of the toy community. I asked Toy Association President Greg Ahearn how many other industries would be seeking exemptions, and he was honest: “All of them. But I believe that some deserve it more than others, and we’re one of those markets which should be excluded.”
Read the rest here.
