{"id":78195,"date":"2025-07-20T14:30:13","date_gmt":"2025-07-20T14:30:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/78195\/"},"modified":"2025-07-20T14:30:13","modified_gmt":"2025-07-20T14:30:13","slug":"how-tariffs-are-shaping-the-holiday-shopping-season","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/78195\/","title":{"rendered":"How tariffs are shaping the holiday shopping season"},"content":{"rendered":"

NEW YORK (AP) \u2014 With summer in full swing in the United States, retail executives are sweating a different season. It\u2019s less than 22 weeks before Christmas<\/a>, a time when businesses that make and sell consumer goods usually nail down<\/a> their holiday orders and prices.<\/p>\n

But President Donald Trump\u2019s vacillating trade policies<\/a> have complicated those end-of-year plans. Balsam Hill, which sells artificial trees<\/a> and other decorations online, expects to publish fewer and thinner holiday catalogs because the featured products keep changing with the tariff rates the president sets, postpones and revises<\/a>.<\/p>\n

\u201cThe uncertainty has led us to spend all our time trying to rejigger what we\u2019re ordering, where we\u2019re bringing it in, when it\u2019s going to get here,\u201d Mac Harman, CEO of Balsam Hill<\/a> parent company Balsam Brands, said. \u201cWe don\u2019t know which items we\u2019re going to have to put in the catalog or not.\u201d<\/p>\n

Months of confusion over which foreign countries\u2019 goods<\/a> may become more expensive to import has left a question mark over the holiday shopping season. U.S. retailers often begin planning for the winter holidays in January and typically finalize the bulk of their orders by the end of June. The seesawing tariffs already have factored into their calculations.<\/p>\n

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\"Mattel<\/p>\n

Mattel toys are seen at a JaZams toy store Friday, June 27, 2025, in Princeton, N.J. (AP Photo\/Matt Slocum)<\/p>\n

Mattel toys are seen at a JaZams toy store Friday, June 27, 2025, in Princeton, N.J. (AP Photo\/Matt Slocum)<\/p>\n

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The consequences for consumers<\/a>? Stores may not have the specific gift items customers want come November<\/a> and December. Some retail suppliers and buyers scaled back their holiday lines rather than risking a hefty tax bill or expensive imports going unsold. Businesses still are setting prices but say shoppers can expect many things to cost more<\/a>, though by how much depends partly on whether Trump\u2019s latest round of \u201creciprocal\u201d tariffs<\/a> kicks in next month.<\/p>\n

The lack of clarity has been especially disruptive for the U.S. toy industry, which sources nearly 80%<\/a> of its products from China. American toy makers usually ramp up production in April, a process delayed until late May this year after the president put a 145% tariff<\/a> on Chinese goods, according to Greg Ahearn, president and CEO of the Toy Association, an industry trade group.<\/p>\n

The U.S. tariff rate may have dropped significantly<\/a> from its spring high \u2014 a truce in the U.S.-China trade war is set to expire on Aug. 12<\/a> \u2014 but continues to shape the forthcoming holiday period. Manufacturing activity is way down from a year ago for small- and medium-sized U.S. toy companies<\/a>, Ahearn said.<\/p>\n

The late start to factory work in China means holiday toys are only now arriving<\/a> at U.S. warehouses, industry experts said. A big unknown is whether tariffs will keep stores from replenishing supplies of any breakout hit toys<\/a> that emerge in September, said James Zahn, editor-in-chief of the trade publication Toy Book.<\/p>\n

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\"A<\/p>\n

A family shops in a JaZams toy store Friday, June 27, 2025, in Princeton, N.J. (AP Photo\/Matt Slocum)<\/p>\n

A family shops in a JaZams toy store Friday, June 27, 2025, in Princeton, N.J. (AP Photo\/Matt Slocum)<\/p>\n

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In the retail world, planning for Christmas in July usually involves mapping out seasonal marketing and promotion strategies<\/a>. Dean Smith, who co-owns independent toy stores JaZams in Princeton, New Jersey, and Lahaska, Pennsylvania, said he recently spent an hour and a half running through pricing scenarios with a Canadian distributor because the wholesale cost of some products increased by 20%.<\/p>\n

Increasing his own prices that much might turn off customers, Smith said, so he explored ways to \u201cmaintain a reasonable margin without raising prices beyond what consumers would accept.\u201d He ordered a lower cost Crazy Forts building set so he would have the toy on hand and left out the kids\u2019 edition of the Anomia card game because he didn\u2019t think customers would pay what he would have to charge.<\/p>\n

\u201cIn the end, I had to eliminate half of the products that I normally buy,\u201d Smith said.<\/p>\n

Hilary Key, owner of The Toy Chest in Nashville, Indiana, said she tries to get new games and toys in early most years to see which ones she should stock up on for the winter holidays. This year, she abandoned her product testing for fear any delayed orders would incur high import taxes.<\/p>\n

Meanwhile, vendors of toys made in China and elsewhere bombarded Key with price increase notices. For example, Schylling, which makes Needoh, Care Bear collectibles and modern versions of nostalgic toys like My Little Pony<\/a>, increased prices on orders by 20%, according to Key.<\/p>\n

All the price hikes are subject to change if the tariff situation changes<\/a> again. Key worries her store won\u2019t have as compelling a product assortment as she prides herself on carrying.<\/p>\n

\u201cMy concern is not that I\u2019ll have nothing, because I can bring in more books. I can bring in more gifts, or I can bring in just things that are manufactured in other places,\u201d she said. \u201cBut that doesn\u2019t mean I\u2019m going to have the best stock for every developmental age, for every special need.\u201d<\/p>\n

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\"Hilary<\/p>\n

Hilary Key, owner of The Toy Chest, straightens merchandise on the shelves of her toy store in Nashville, Ind., Thursday, June 26, 2025. (AP Photo\/Michael Conroy)<\/p>\n

Hilary Key, owner of The Toy Chest, straightens merchandise on the shelves of her toy store in Nashville, Ind., Thursday, June 26, 2025. (AP Photo\/Michael Conroy)<\/p>\n

Read More<\/p>\n

The retail industry may have to keep taking a whack-a-mole approach to navigating the White House\u2019s latest tariff ultimatums and temporary reprieves. Last week, the president again reset the rates on imports from Brazil, the European Union<\/a>, Mexico, and other major trading partners but said they would not take effect until Aug. 1.<\/p>\n

The brief pause should extend the window importers have<\/a> to bring in seasonal merchandise at the current baseline tariff of 10%. The Port of Los Angeles had the busiest June in its 117-year history after companies raced to secure holiday shipments, and July imports look strong so far, according to Gene Seroka, the port\u2019s executive director.<\/p>\n

\u201cIn my view, we\u2019re seeing a peak season push right now to bring in goods ahead of potentially higher tariffs later this summer,\u201d Seroka said Monday.<\/p>\n

The pace of port activity so far this year reflects a \u201ctariff whipsaw effect\u201d \u2014 imports slowing when tariffs kick in and rebounding when they\u2019re paused<\/a>, he said. \u201cFor us consumers, lower inventory levels, fewer selections and higher prices are likely as we head into the holidays.\u201d<\/p>\n

Smith, who co-owns the two JaZams stores with his partner, Joanne Farrugia, said they started placing holiday orders two months earlier than usual for \u201ccertain items that we felt were essential for us to have at particular pricing.\u201d They doubled their warehouse space to store the stockpile. But some shoppers are trying to get ahead of higher prices just like businesses are, he said.<\/p>\n

He\u2019s noticed customers snapping up items that will likely be popular<\/a> during the holidays, like Jellycat plush toys and large stuffed unicorns and dogs. Any sales are welcome, but Smith and Farrugia are wary of having to restock at a higher cost.<\/p>\n

\u201cWe\u2019re just trying to be as friendly as we can to the consumer and still have a product portfolio or profile that is gonna meet the needs of all of our various customers, which is getting more and more challenging by the day,\u201d Smith said.<\/p>\n

Balsam Brands\u2019 Harman said he\u2019s had to resign himself to not having as robust a selection of ornaments and frosted trees to sell as in years\u2019 past. Soon, it will be too late to import meaningful additions to his range of products.<\/p>\n

\u201cOur purpose as a company is to create joy together, and we\u2019re going to do our very best to do that this year,\u201d Harman said. \u201cWe\u2019re just not going to have a bunch of the items that consumers want this year, and that\u2019s not a position we want to be in.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 With summer in full swing in the United States, retail executives are sweating a…\n","protected":false},"author":3,"featured_media":78196,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[3881,13214,64,74,44679,33945,18792,42916,69,12042,79,8982,57,86,54100,46736,7709,6323,2862,266,13790,54098,54099,1165,401,6067,80,9060,16618,61,67,132,68,107],"class_list":{"0":"post-78195","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-ap-top-news","9":"tag-asia-pacific","10":"tag-business","11":"tag-china","12":"tag-christmas","13":"tag-consumer-products-and-services","14":"tag-corporate-management","15":"tag-dean-smith","16":"tag-donald-trump","17":"tag-economic-policy","18":"tag-economy","19":"tag-gene-seroka","20":"tag-general-news","21":"tag-government-policy","22":"tag-hilary-key","23":"tag-holiday-shopping","24":"tag-holidays","25":"tag-in-state-wire","26":"tag-indiana","27":"tag-inflation","28":"tag-international-trade","29":"tag-james-zahn","30":"tag-joanne-farrugia","31":"tag-lifestyle","32":"tag-new-jersey","33":"tag-nj-state-wire","34":"tag-politics","35":"tag-retail-and-wholesale","36":"tag-tariffs-and-global-trade","37":"tag-u-s-news","38":"tag-united-states","39":"tag-unitedstates","40":"tag-us","41":"tag-world-news"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/78195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=78195"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/78195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/78196"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=78195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=78195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=78195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}