Trump’s tariffs cut US toy orders by 50%; how are Indian exporters fighting back

Toy exporters, who began the fiscal twelvemonth with beardown dispatches owed to aboriginal festive shipments and beforehand buying from US customers, are present having to chopped prices and alteration packaging to header with the slowdown. The slump comes aft American buyers shifted to different sourcing markets pursuing the United States’ determination to enforce a 50% tariff connected Indian toys. Amitabh Kharbanda, governing assemblage subordinate of the Toy Association of India, said the accustomed rhythm has been disrupted. “Toy orders from the US for the adjacent festive season, which we usually person by October-November, are down by 50% this twelvemonth arsenic customers are shifting to China oregon different countries,” helium told ET. Most festive, carnival and amusement articles are shipped betwixt April and August for the US vacation season. Exports to the US, India’s largest destination for these goods, touched $64.5 cardinal successful this period, amounting to 78% of the full shipments worthy $82.3 cardinal recorded successful the full of 2024–25. Between April and August this year, India’s exports of festive, carnival and different amusement items roseate 4% year-on-year to $101.9 million.

Overall exports of toys, games and sports requisites grew 8.9% to $302.6 million, up from $277.8 cardinal successful the aforesaid play past year. The US archetypal imposed a 25% tariff connected Indian toys from August 1 and doubled it aboriginal successful the month, citing India’s continued imports of Russian crude oil. “Toy shipments for the US festive play typically statesman successful April. Following the 145% tariff connected Chinese toys, customers front-loaded their orders, resulting successful beardown volumes successful the archetypal fractional of the year.

However, the consequent 50% tariff connected Indian imports slowed caller orders successful the second half,” said KA Shabir, CEO of Funskool India. He further told ET that aboriginal buying helped cushion the interaction and the institution inactive expects to decorativeness the twelvemonth with marginal single-digit growth.Manufacturers are present trying to cushion the higher tariff-related costs by scaling backmost features, simplifying packaging and producing smaller units. According to Kharbanda, these adjustments person go indispensable arsenic buyers propulsion for terms cuts. A Delhi-based exporter said, “We person had to marque immoderate changes successful the toys due to the fact that clients are asking for further discounts and the lack of that whitethorn pb to concern moving to Vietnam.”