Toy Association
Amid trade wars with China, the collapse of Toys R Us and growing issues of IP theft, the US toy market emerged from the first half of 2018 seven per cent up on last year. We check in the Toy Association’s Steve Pasierb for the latest from across the ocean
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t really was only a matter of time before the toy industry was dragged into the ongoing battle for power between The United States’ President Donald Trump and China’s Xi Jinping. At the time of writing, reports had emerged that the White House had slammed a new wave of tariffs on $200 billion of Chinese imports, hitting upwards of 6,000 Chinese goods with import duties of ten per cent, from refrigerators to electrical components, circuit boards, furniture and components that go into making some toys. Finished toys, at this present time, remain outside of Trump's swinging sword. But for just how long will they be safe? It’s likely that by the time you are reading this, US consumers will be somewhere between days, or weeks, away from paying jacked up prices for such commodities, as the two leaders continue to measure their strength of arm, among other things, in front of a global audience. Of course, as is Newton's first law, the reaction came swiftly from China and Beijing hit back with increased fees on further $60 billion of American products. The rhetoric behind this trade war has been clear from the start. Washington wants to address “China’s unfair trade practices,” and for it to dial back on plans that according to the US, Europe and other trading partners, ‘violate China’s market-opening commitments.’
Meanwhile, China has been trying to recruit allies such as Germany, France and South Korea against the US capital state. What this all means is that Steve Pasierb, president and CEO of the Toy Association, the US equivalent of our very own BTHA, is currently a very busy man. While these two powers continue to flex, thousands if not potentially millions are being swept up in what has been billed as a 'war on trade.' And this is where Pasierb, and the Toy Association have done their bit to step in. Keeping on top of each political, social or economic affair that threatens potential impact upon the North American - if not the global - toy industry can certainly be no easy task, given the whirlwind of a year 2018 has proven to be both Stateside and here in the UK, so far. So right now, Pasierb's job is not an enviable one. But he is not acting alone. Last month, the TA joined Americans for Free Trade, a multi-industry coalition aimed at opposing tariffs and highlighting the benefits of international trade to the US economy. It's Pasierb and the TA's latest step in its aggressive fight against toy tariffs. "This tit for tat trade war with China presents a real concern and risk for the US toy industry," Pasierb tells ToyNews. "The US toy industry continues to recover from the loss of Toys R Us, but the journey will last through 2019. This is not the time to essentially place a tax on fam-
ilies and their children. Any pressure that decreases consumer spending power and increases the price of toys is a negative that will be felt across our industry." Just as the industry begins to recoup from the loss of Toys R Us, trade wars intensify, and while any eventual cease fire in this ongoing trade war is only speculation, Pasierb and the Toy Association have declared they will continue to act to minimise casualties as best they can. It’s just as well that the US toy market boasts a robustness that may just help it weather the storm. In fact, US toy sales grew seven per cent in the first half of the year, even amid the tumult of Toys R Us shuttering its stores, underscoring the consumer appetite for toys and the resilience of the industry. “We have been told that mass market store managers reported strong Q2s due to the attention paid to and discounts at Toys R Us, which seemingly put consumers into full buying mode,” Pasierb tells ToyNews. The TA president continues: “From specialty to mass e-tail, we are also seeing retailers mobilising to claim market share by expanding toy selections.” What’s going on is that the US market is already seeing positive signs for continued recovery; it's a glimmer of light. “At this moment, the toy community is gearing up for Fall Toy Preview, where hundreds of toymakers will showcase their ready-to-preview lines for next year in October 2018 | toy news | 29