Tariff on China

CHINA DOES NOT PAY TARIFFS WHEN GOODS ARE EXPORTED TO THE USA!

The importer pays the tariff when the goods land in the USA. The importer means the US businesses that are receiving the goods. CHINA. DOES. NOT. PAY. THE. TARIFF.

US businesses (like us- literally, me) pays the tariff to the US government.

TIMELINE: Tariffs on China (sourced here)

1 Feb Trump announces elimination of de minimis for China (initially).
4 Feb 10% tariff imposed on Chinese and Hong Kong imports. No drawback or exclusion process.
5 Feb De minimis reinstated temporarily due to USPS overload and customs issues.
4 Mar Tariff on China doubled to 20%.
2 Apr Trump announces 34% reciprocal tariff on 60 countries, starting with China.
5 Apr New baseline 10% reciprocal tariff applies to all countries (excl China).
8 Apr After China retaliates, U.S. increases China tariff to 84%; raises de minimis duty to 90%.
9 Apr Tariff on China raised to 125%. De minimis duty rises to 120%.
10 Apr 125% China tariff becomes effective.
2 May End of de minimis for China and Hong Kong. New duties and postal fees apply.
1 June Postal fee increases for low-value shipments from China.

The phrase "tariff on China" refers to a tax imposed by the U.S. government on goods imported from China. Here’s what that means for a U.S. consumer:

🔍 What Is a Tariff?*

A tariff is a tax that the U.S. government charges on certain imported goods. So, if the U.S. puts a tariff on Chinese products, it means companies that bring those goods into the U.S. (like Tenacious Toys) must pay extra money to do so.

💸 How Do Tariffs Affect U.S. Consumers?

1. Higher Prices on Goods

Many U.S. businesses rely on importing goods (or parts) from China—things like electronics, clothing, toys, furniture, and more.
If there's a tariff, importers (like Tenacious Toys) pay more to bring those goods in.
Those extra costs are often passed down to consumers, meaning you might pay more for the same product. That's a whomps.

2. Less Choice

Some businesses might stop importing certain products because they’re too expensive with the tariffs. This is definitely something that we will be forced to do at Tenacious Toys.
That can lead to fewer choices for shoppers. Big whomps.

3. Domestic Alternatives (yeah right)

In some cases, U.S. companies may try to source goods from other countries or make them domestically.
This can be good in the long run, but it’s often more expensive or slower to scale.
Domestic production at the current scale is NOT POSSIBLE in the toy industry as the high quality toys from China cannot be produced in the same scale and quality at the prices we are used to paying as American consumers. We can get simpler toys made here (Mile High will produce soft vinyl toys in the USA, but they do not have a paint operation to decorate the vinyl). We could perhaps set up factories here but no American will work on a paint line for $5/hour, dotting thousands of irises onto the eyeballs of thousands of action figures.

🏪 A Real-World Example of Tariffs in Action

Let’s say there’s a 25% tariff on Chinese-made electronics. A Bluetooth speaker that cost $40 to import might now cost $50. A U.S. store that sells it may raise the price to maintain their profit, so instead of paying $60, you’re now paying $70 or more.

⚖️ Why Do Tariffs Happen?

In theory, they are meant to protect U.S. industries by making foreign goods more expensive. (And by "protect" we mean "bankrupt the US industries and destroy the current global economy")
To pressure other countries, like China, to change trade practices the U.S. considers unfair. (Because that works really well 🤡 )
But while tariffs may help a few random U.S. manufacturers, they raise costs for consumers so they are generally accepted as being terrible for Americans.

Hey AI, give me a breakdown on plastic toys and how they are impacted by the tariffs.

AI: The phrase "tariff on China" refers to taxes imposed by the U.S. government on THE AMERICANS who import goods from China. These tariffs can significantly impact U.S. consumers, particularly in the toy industry. Here's how:

🎯 Tariffs Impact on Plastic Toys

1. Significant Price Increases Due to Tariffs

Approximately 77% of toys sold in the U.S. are imported from China.
Recent tariffs have been raised to as high as 145% on Chinese imports.
These increased costs must be passed on to consumers, leading to higher retail prices for toys.

2. Tariffs Reduce Availability of Toys

Some toy companies are halting orders for popular items due to the high tariffs, potentially leading to shortages during peak seasons like the holidays.

3. Tariffs Cause Shift in Manufacturing

To mitigate tariff impacts, companies are moving production to countries like Vietnam, India, and Indonesia.
However, transitioning manufacturing locations takes a long time and will not immediately offset the increased costs.

🛍️ What Tariffs Mean for Consumers

Higher Prices: Expect to pay more for toys, especially those traditionally priced under $20. Say goodbye to a Merry Christmas!
Limited Choices: Some toys will become harder to find when companies reduce imports due to tariffs. We will be eliminating our importation of toys but we will NOT BE ABLE TO BUY THE SAME TOYS FROM ANY AMERICAN COMPANIES. Because the toys we sell are NOT made in America.
Early Shopping: Purchasing toys earlier in the year might help avoid potential price hikes during the holiday season. So go take all that extra money you made when you bought the dip, and spend it at Tenacious Toys!

🧸 Toy Industry Response to Tariffs

The Toy Association and other industry groups are advocating for the removal of tariffs on toys, emphasizing their importance for childhood development and the disproportionate impact on consumers.

* this article was written by AI and then sprinkled with Benny's fairy dust! ✨