THE scorching heat may not have you thinking about Christmas this month, but experts advise some holiday shopping to start now.
That’s because the hottest gifts may have a not-so-jolly price tag when Santa comes into town in December.
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Or they may not even be on shelves when you rush to get Black Friday door busters.
The news comes as President Donald Trump weighs in on increased tariffs for China and other countries.
China currently makes 80% of toys sold in the United States, many of which go to toymaker giant, Hasbro.
The company’s CEO, Chris Cocks, warned consumers to strike the following off their lists before prices go up or supply shrinks as a potential result of the tariff change.
- Play-Doh Barbie
- Nano-Mals
- Peppa Pig toys featuring Baby Evie
“If you’re a mom or a dad, you’re probably going to want to go and buy that early,” Cocks said during a recent earnings call.
NOT ALONE
Other industry insiders are also sounding the alarm.
Toy Association President and CEO Greg Ahearn told the Associated Press (AP) that shoppers can expect 15% to 20% price increases on games and dolls this winter.
Ahearn said these price spikes can even arrive as early as back-to-school shopping season, which is pretty much already here.
Basic Fun CEO Jay Foreman also told AP that a Tonka Classic Steel Mighty Dump Truck could roll from $29.99 to $39.99 by the fall, a whopping $10 increase.
Mattel, which makes Barbie and Hot Wheels products, has also said customers may have to brace for price increases.
But it’s not just toys that may go up in price this holiday season.
PRICY DECORATIONS
China also supplies more than 90% of Christmas decorations sold in the US.
And many people turn to artificial Christmas trees to save money. But that too can get more expensive.
Savings Tips For the Holiday Season
Despite the threat of higher prices this holiday season, you don’t need to break the bank
Here are some tips to save cash as you check off your gift list.
- Create a holiday shopping budget and don’t plan to spend more than you can afford
- Make a list and assign a dollar value for each person
- Look out for deals on Black Friday, Cyber Monday and Green Monday
American Christmas Tree Association Executive Director Jami Warner told Observer that a $500 artificial Christmas tree could go up to $1,000 this year.
That’s more than the total average consumers expected to dish out for the holidays in 2024.
Consumer holiday spending was expected to reach $902 per person in 2024, according to the National Retail Federation.
DRINK DEBACLE
Coffee is at the top of common grocery items expected to be impacted by ongoing trade tensions.
Similar to toys, most coffee in the United States is imported.
Kona Haque, research lead at commodity trader ED&F Man, told the Financial Times earlier this year that the US remains the “single largest importer of coffee in the world.”
Haque argued that the cost of green coffee to roasters would “immediately” increase as the result of tariffs, with that cost “inevitably” passed to consumers.
“The USA simply cannot produce these products,” she said.
A Walmart employee also recently uncovered an “insane” 100% price increase on an item in-store.
Cellular users also saw cost bumps from Verizon, AT&T, and T-Mobile.
