President Trump’s tariffs on Chinese imports are creating an unexpected revival in American toy manufacturing. U.S. toymakers are seizing the opportunity to expand domestic production, creating more jobs and avoiding hefty import taxes. He’s bringing back legendary American industries!
At a glance:
• U.S. toymakers are increasing domestic manufacturing to avoid tariffs imposed during the Trump administration
• Nearly 80% of toys sold in America are currently sourced from China, making the industry vulnerable to import taxes
• Ohio-based Simplay3 is operating 24/7 to meet demand for American-made toys
• Cra-Z-Art plans to increase its U.S. manufacturing space by 50% to 1.5 million square feet
• Toy prices are expected to rise 15-20% for products still imported from China
American Toymakers Expand Production
Several U.S. toy manufacturers are experiencing significant growth as President Trump’s tariffs on Chinese imports reshape the industry landscape. Companies like Simplay3 and Cra-Z-Art are ramping up domestic production rather than relying on overseas imports that now face additional taxes.
Ohio-based Simplay3 is adding workers and operating around the clock to meet increasing demand for their American-made toys. The company uses a specialized “rotational molding” process that allows them to manufacture products domestically at competitive prices.
Tariff Challenge Creates Opportunity
The tariffs have presented both challenges and opportunities for the toy industry, which has traditionally relied heavily on Chinese manufacturing. With nearly 80% of toys sold in America currently coming from China, many companies are facing difficult decisions about pricing and production.
Simplay3 founder John Hradisky explained their strategy for maintaining affordability despite market pressures. “We consciously made an effort, as a small company we can do this, we can make a conscious effort to start designing products that are under $100, that are $79, that are $49, and now we see that we get the sales back up through volume, not necessarily through the price, but that’s what the consumer is looking for right now.”
Toy industry experts predict price increases of 15-20% for products still being imported from China. These additional costs will either cut into manufacturers’ profits or be passed on to consumers in the form of higher retail prices.
Amid President Trump's tariffs, America's largest toy maker is shifting a significant portion of its manufacturing from China to the U.S., a move dubbed the "Trump Effect," boosting domestic production and potentially reshaping global supply chains. pic.twitter.com/QQEaPTsfMB
— Shooting Shining 🌞 (@ShootingShining) March 14, 2025
Major Investment in American Manufacturing
Cra-Z-Art, another American toy company, has announced plans to dramatically increase its domestic manufacturing capacity. The company is expanding operations in Tennessee and Florida to create a total manufacturing footprint of 1.5 million square feet.
Lawrence Rosen, CEO of Cra-Z-Art, emphasized the importance of this strategic move. “Based on the current economic climate, we are taking decisive action to expand and invest in American manufacturing,” Rosen said.
The expansion allows Cra-Z-Art to maintain competitive pricing by avoiding tariff costs. Marshall Murdough of Simplay3 noted that domestic manufacturing “benefits because they’re not going to see an additional $15 tacked on to a $100 item.”
The Toy Association, representing the industry, has lobbied for exemptions from tariffs, arguing that Chinese manufacturing expertise is difficult to replicate. However, many American companies are proving that domestic toy production can be both viable and profitable when innovative approaches are applied.
Despite industry concerns, the tariffs appear to be achieving one of President Trump’s stated goals – bringing manufacturing jobs back to America. As more toy companies shift production to the United States, American workers are finding new opportunities in an industry that had largely moved overseas in recent decades.
