SlateStone Wealth’s Chief Market Strategist Kenny Polcari and Verdence Capital Advisor’s CEO Leo Kelly recently discussed the effects of President Donald Trump’s tariff plan on the economy. Some U.S. toy manufacturers are seeing increased growth in domestic production due to these import tariffs.
Ohio-based toy company Simplay3 is among those expanding operations. FOX Business correspondent Lauren Simonetti reported that Simplay3 is increasing its workforce by 10% and running operations continuously to meet demand. The company, which produces various children’s toys using a “rotational molding” process at its facility in northeastern Ohio, has leveraged domestic manufacturing to maintain competitive pricing amidst the tariffs.
Matthew Murdough, E-commerce Director at Simplay3, told FOX Business that the company’s pricing strategy benefits American consumers as no additional costs are added to products. John Hradisky, Vice President of Product Development, noted the company’s focus on designing affordable products to drive sales volume.
Cra-Z-Art is also planning to increase its U.S. manufacturing space by 50% to offset the impact of tariffs on imported goods. This expansion will enhance the company’s production capacity to 1.5 million square feet. Cra-Z-Art Chairman Lawrence Rosen stated that the expansion will benefit retail partners by enabling faster and cost-effective distribution of products.
The Trump administration increased the tariff on imports from China to 20% in early March, also imposing a 25% tariff on imports from Canada and Mexico before exemptions under the United States-Mexico-Canada Agreement. According to the Associated Press, nearly 80% of toys purchased in the U.S. are made in China, which could lead to higher consumer prices, as stated by Toy Association CEO Greg Ahearn.
The Toy Association, along with international trade organizations, has called for the exclusion of toys from all tariffs while the U.S. seeks better trade deals globally.