Impact of Trump's Tariffs on Toy Prices

SOURCE www.breitbart.com
Trump's tariffs on Chinese goods, including toys, are not expected to raise prices for consumers as the toy industry has time to adapt and diversify production. The dominance of Chinese toy manufacturing is due to deliberate industrial policy, not comparative advantage. Tariffs could compel the U.S. toy industry to rethink its reliance on China.

Key Points

  • Chinese dominance in toy manufacturing is due to industrial policy, not comparative advantage.
  • Tariffs could break the economy free of China's policy.
  • Tariffs may help the U.S. toy industry rethink its reliance on China.

Pros

  • Tariffs could compel the U.S. toy industry to diversify production.
  • Could lead to a healthier trading system.

Cons

  • Toy prices could rise for consumers in the future.