A British toy manufacturer, Character Group, faced uncertainty in trading with the US due to Donald Trump’s tariffs, leading to a pause in shipping Chinese-made products to the country. The company’s decision to halt shipments in April and withdraw financial guidance for the year was a direct response to the hefty levies imposed on Chinese imports by the White House. With 20% of its revenues coming from the US market, Character Group highlighted that most of its products sold in the US were manufactured in China, underscoring the impact of the trade tensions on its operations.

The escalation of tariffs between the US and China in April amid a trade war further exacerbated the situation, affecting global sales and customer confidence. Despite the temporary halt in tariffs and hopes for a negotiated resolution, the company emphasized the ongoing uncertainty in the trade policy landscape. This economic unpredictability has led to cautious consumer behavior and a reluctance to commit to orders, impacting sales across key territories.

Despite the challenges, Character Group expressed confidence in maintaining profitability for the current financial year. The broader toy industry, represented by the Toy Association, has advocated for keeping toys tariff-free, emphasizing their importance in childhood development and education. Retail sales of toys in the US exceeded $28 billion in 2024, highlighting the significant market at stake. However, concerns remain as Trump’s tariff policies could potentially limit product availability and increase costs for American consumers, potentially altering the toy market dynamics in the country.