Toy retailers brace for tariff impact

ATLANTA - Family-owned toy stores like Kazoo Toys in Buckhead are feeling the pressure as the Trump administration’s latest tariff policy raises concerns across the industry.

The White House recently enacted a 90-day pause on reciprocal tariffs for every country except China—a move that alarms retailers who depend heavily on Chinese imports. According to industry estimates, more than 75% of toys sold in the U.S. are made in China.

What they're saying:

"Most of them come from China," said Whitney Novak, co-owner of Kazoo Toys, when asked about the origin of her store’s inventory. "I would say probably 85 to 90%."

For Novak and her husband Joe, the uncertainty has prompted them to act early. The couple has spent roughly $10,000 stocking up on top-selling items in anticipation of a proposed 145% tariff on Chinese goods.

"I think a lot of our vendors have a lot of product stateside already, and so it wouldn't necessarily affect it immediately," Novak said. "But it's a little nerve wracking to think that it's probably going to come through. And be hitting everything around Christmas time."

The stakes are high. The Toy Association reports that Americans purchase about 3 billion toys each year, generating an estimated $42 billion in sales. Of those toys, 77% are manufactured in China.

While higher costs may be inevitable, Novak believes families will still prioritize toys—though perhaps with a more frugal mindset.

"Toys in general are something that I think parents are conscientious enough not to skimp on," she said. "Kids need toys to play and learn. And, you know, entertain themselves."

What's next:

President Donald Trump has argued that the tariffs are meant to bring manufacturing back to the U.S., but small retailers like Kazoo say such a shift would take time and investment—time that may strain businesses already working on thin margins.

"We just don’t have the infrastructure yet," Novak said. "And until we do, we’re all stuck navigating this uncertainty."

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