Walmart has been in the news this week as the impact of tariffs begins to be felt more sharply at checkout. The company said in various reports that the prices increases were due to a “range of factors,” but the impact of tariffs is likely at the top of that range.
A report in the New York Post, on CBS and in many other mainstream outlets all cite toys as one of the industries hardest hit by the increases, using the example of a 47 percent price increase on Spin Master’s Etch-A-Sketch as what is presumed to be one of the most relatable examples. Toys from Jurassic World, and MGA were also noted to have had significant price increases.
The move comes as Walmart reported that revenue declined to $4.4 billion for the recently ended quarter, versus $5.1 billion for the previous year. Revenues, however, were up 2.5 percent for the period.
Of course, the toy industry is always a dependable, hot-button issue when safety or politics are concerned for the mainstream media. In this case, however, the concern is real. Over the past 6-10 years, the average spend on toys per child in the U.S. has hovered around $300, with some estimates as high as $370. If that stat holds for 2025, it means fewer unit sales.
If the current, 90-day pause on tariffs on products from China ends on August 12, that will come right in the middle of the season when Q4 toys are typically landed in the U.S., so uncertainty isn’t going away any time soon.
Sadly, for our industry, 2025 continues to be the year of the scramble and the pivot.
