SAN DIEGO (FOX 5/KUSI) — New research reveals that President-elect Donald Trump’s proposed tariff hikes could lead to higher prices for common consumer goods and toys are among the products most likely to be heavily impacted.
Replay Toys, a store in North Park, has been a staple in the neighborhood for a little over 8 years. The shop specializes in selling used and new toys, the majority of which are imported from Canada and China. Both of those countries are targeted in Trump’s potential trade war.
Kimberly Nabours, the owner of Replay Toys, offers children a space to be creative and learn through toys. Nearly all them are imports.
Shelves of options are on display, curated for boys and girls of all ages. From puzzles to dolls, you name it and you’ll likely find it at the local shop.
Keeping her store stocked requires a middle-man.
“I’ve noticed some importers definitely changing their prices and I’ve seen some prices go up to where I just can’t even buy the stuff anymore,” said Nabours.
It’s something she fears will get worse if proposed tariff increases take effect under the Trump administration.
While campaigning, Trump committed to levying tariffs of 10 to 20% on all imports and a special 60% rate on imports from China.
University of San Diego Economics Professor Alan Gin says that will have significant impacts on working class people.
“When those products are imported, a tax has to be paid by the importers and they’re going to try to pass that on then to businesses,” Professor Gin explained.
Researchers at the Peterson Institute for International Economics say China supplies roughly 75% of U.S. imported toys and sports equipment, totaling nearly $32 billion in 2023.
Current tariffs are relatively low but toys would be subject to a more than 58 percentage point tariff increase if Trump follows through. The analysis also shows other sectors most impacted will be machinery and electronics.
Economists predict businesses will either eat the cost or pass it down to customers.
“That will result in reduced profits for businesses and they might decide to stop selling certain items completely,” said Professor Gin.
The Peterson Institute previously estimated that the tariff hikes would cost a typical middle income household more than $2,600 per year.
Nabours says she tries to avoid raising her prices and tries to stay a step ahead, especially as she prepares to find a new space for her business. Her current lease is coming to an end and she has to be out by the beginning of March.
“I’ve definitely tried to stock up and get everything I need ahead of time, partially for Christmas but partially because I don’t know how it’s going to be later,” said Nabours.
The Peterson Institute analysis found Trump’s proposed tariffs on Mexico and Canada would have the biggest impact on prices for autos, vegetables, fuel, prepared food and animal products,
