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V O L . X X X I N O. X I M AY 1 9 , 2 0 2 5 18 S M A L L B U S I N E S S F O C U S Caught in the crosshairs With 80% of all U.S. toys manufac- tured in China, tariffs are pushing up prices. Mattel Inc., the global toy producer, is also feeling the heat; the maker of Barbie, Ken and the new LeBron James doll reported a first-quarter loss on May 5 and said it will reduce its reliance on produc- tion in China. e company also said it will focus on selling less expensive toys like the best-selling $1 basic Hot Wheels cars. e impact of tariffs on the $42 billion U.S. toy industry as a whole is reflected in a recent survey by the Toy Association, a NYC.-based trade group urging a return to zero tariffs on toys. Out of 400 small and medium-sized toy companies polled by the trade group in April, close to half said they expect to go out of business within weeks or months due to U.S. tariff policy. Among mid-sized players, 87% are delaying orders and 80% are cancelling them. eir smaller peers are faring only slightly better, with 81% delaying orders and 64% cancelling. "Christmas 2025 at risk," the group declared in April. "Tariffs of 145% on Chinese imports have frozen the toy production supply chain, having a devastating impact on SMEs, many of whom are family-owned … includ- ing high levels of cancelled orders and significant cancelled purchases, which will quickly result in loan defaults and bankruptcies." Taking its case to the top level, the group has urged President Donald Trump's administration to exempt all toys imported from China from tariffs. Beyond the short-term effort to save holiday sales this year, the group is demanding an exemption on toy import taxes in bilateral trade talks. at would be in line with the "zero for zero" tariff structure on toys laid out in the 1994 General Agreement on Tariffs and Trade, recognizing toys' essential role to foster learning. e Toy Association also notes that the International Emergency Economic Powers Act — a U.S. law giving the president broad authority to regulate international economic transactions during a national emer- gency — exempts books and other educational materials from trade restrictions. r u d m a n w i n c h e l l . c o m BANGOR 84 Harlow St. (207) 947.4501 ELLSWORTH 140 High St. (207) 374.5833 We're more than attorneys — we're your partners in success. Drive your business forward with confidence Expert legal guidance with a Maine touch At Rudman Winchell, we specialize in providing tailored legal solutions that help businesses grow and thrive. Whether you're navigating real estate, contracts, or complex regulations, our experienced team is here to guide you every step of the way. C O U N S E L O R S A T L A W Overall, there's a lot of concern not just with how the tariffs are going to be implemented, but by the whiplash effect. — Curtis Picard Retail Association of Maine P H O T O / C O U R T E S Y O F M AT T E L I N C . Mattel Inc., the maker of Barbie, Ken and the new LeBron James doll (shown here), aims to reduce its reliance on production in China. » C O N T I N U E D F RO M PA G E 1 6 C O N T I N U E D O N PA G E 2 0 »

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