Toy shortages are in the pipeline as U.S. firms cancel orders with tariffs putting Christmas ‘at risk’

• The majority of American toy companies The cancellation and delay of orders amid China's high tariffs, which produces about 80% of all toys sold in the US by an industry group that warned the toy supply chain was frozen, threatened to drive many companies out of business and Christmas “in danger” this year.

For consumers, the holiday shopping season begins for about six months. But for retailers and manufacturers, it's Christmas season – and the massive tariffs in China are freezing the supply chain.

According to a recent -only SURVEY FROM TOY ASSOCIATIONA US industry group that represents manufacturers, 80% of mid-sized companies and 64% of small companies canceled orders. In addition, 87% of mid-sized companies and 81% of small companies delay orders.

And many of those companies may not survive enough to reach the holidays. About half of small and mid-sized companies, which make up 96% of American toy companies, said they will be out of business for weeks or months due to the current US tariff policy.

“The tariffs of 145% in Chinese imports are frozen on the toy supply chain, having a devastating effect on SMEs, many of which are family -owned … including high levels of cancel orders and significant retail purchases that canceled, which quickly results in default and losses and losses,” said the toy to toy “Christmas 2025 at risk.”

That's because the holiday shopping period can make or break the bottom line of a store for the year. In fact, Black Friday is traditionally when many retailers earn, meaning they will go from red to black ink to their ledgers.

China, meanwhile New York Times.

Greg Ahearn, Chief Executive of Toy Association, said to Hours That if the production does not start soon, “there is a high probability of a toy deficiency this holiday season.”

And Jennifer Bergman, who owns the West Side Kids toy store in New York, said he remembered that he had no toys to be sold for Christmas.

He said to Hours Those drawbacks are getting shape, saying an import that holds a huge scooter -followed by scooters for him to rerout a shipment in Canada to avoid tariffs on us, with Bergman preparing to get just part of his order.

For his part, President Donald Trump acknowledged Wednesday that his tariffs could affect the presence of toys, but the severity was lowered.

“Well, maybe the kids will have two dolls instead of 30 dolls, and maybe the two dolls are worth a few bucks yet,” he told journalists.

Make sure, the US giant Hasbro toy reported a strong first-quarter income last week and maintained its 2025 guide, citing the ability to quickly change production to reduce tariff effects.

But the entertainment, the bratz manufacturer, LOL surprise, and small tonts, are less confident and warn that Hasbro's results do not reflect the general situation.

“Consumers, especially families who already feel cheeks, are the sufferers,” said and CEO founders Isaac Larian Fortune's Sydney Lake. “Come on this Christmas, we look at the major deficiencies in toy toy, with duplicate prices or more.”

This story was originally featured on Fortune.com