Sawt Falasteen - Small businesses warn of Trump tariff impact on toy industry at Comic-Con

"Not the most sexy topic," Jonathan Cathey, chief executive of collectibles company The Loyal Subjects, admitted at a panel titled "Toys, Tariffs, and Trade Wars" at the four-day convention in San Diego, California.

"But this ultimately affects you guys, it affects the end user," he said.

"Prices will go up, and our rate of sales will go down."

Toy companies have been fretting about the impact of Trump's global tariff blitz on the industry, particularly when it comes to China.

Of over $17 billion worth of toys imported to the United States last year, more than $13 billion came from China.

But a rollercoaster tariff row between Washington and Beijing has caused havoc for US businesses and their Chinese suppliers.

Panel moderator Daniel Pickett argued that the Trump administration is "imposing truly exaggerated, somewhat crazy, and frightening measures."

He said Trump's proposal to impose additional tariffs on imports "has only wreaked havoc on the entire industry."

Trump recently dismissed warnings by toy giant Hasbro's CEO Chris Cocks about rising prices if higher tariffs were imposed, defending his trade policy by emphasizing it favors domestic production.

But Cathey argued the rhetoric doesn't reflect American reality.

He said: "There's like 480,000 manufacturing jobs... that aren't even filled. So we're going to do what, we're going to bring a bunch of factory jobs back that nobody can fill."

The business owner suggested that US value-addition lies in innovation rather than manufacturing.

"There are industries where tariffs make sense," Cathey continued, highlighting the automotive and mining sectors.

"There's a mechanism where tariffs make sense that actually protect jobs, American workers, and our national security. Barbie ain't it."

Brian Flynn of Super7, a collectibles and action figures brand, said the Trump administration's shifting tariff policies have caused chaos and uncertainty.

"Nobody knows what's going to happen," he said, adding that the triple-digit tariffs Trump has sometimes mentioned would "drive everyone out of the market."

Flynn said the impact was already visible at Comic-Con, where he had to limit himself to a small concession stand rather than a larger exhibit space.

Consumers will feel the impact in their wallets next quarter, he warned. "And when it hits, that's going to make a big difference for us."

Y.Zaher--SF-PST