Toys and Tariffs (US customers)

[andrewsaurus rex]

huh?  Why would sending any gift be illegal?  It's knowingly declaring a value for it that is too low, is what is illegal.

Cause it's do dodge import fees.

Ah i see, he was referring to calling items gifts which are not actually gifts.  That is illegal too, but is commonly done, which is why gifts whether legitimately gifts or not, are subject to the same tariff rates as none gifts.

This new 90 day pause will give countries around the world an opportunity to explore new markets and make new trade partners.  Whether they will or not is another story.  For dinosaur toys, while it would be great if the manufacturers redirected inventories to other nations, since sales will be down in the US due to tariffs.  Problem is, can those other countries absorb that inventory ie are there enough interested buyers to make up for the reduced US based buyers?

[Gwangi]

I'm trying to put myself in the shoes of a company who has commissioned a factory in China to make me ten thousand units of some toy. I might, in anticipation of having to charge higher prices for them in the US, divert a lot more of them to other markets.

I've noticed that Schleich figures come from all over the place. Bosnia, Portugal, Tunisia, etc. I think some of Mattel's dinosaurs are manufactured in countries other than China too. I feel like I've seen Vietnam stamped on some of them.

[SidB]

... something about not putting all of one's eggs in one basket; easier said than done, of course!

[dragon53]

This is today's email from Bigbadtoystore about tariffs---maybe it has useful information.

"Hi Everyone,

I'm writing to share with you how we are working to handle the rapidly escalating tariff situation.  I want to be transparent and honest with you about the impacts of these tariffs. This is a complex situation so I apologize upfront for the length of my note, but I feel it is important to be as clear as possible in this difficult time.

Tariffs – What Just Happened
For 25 years, we have operated as a family-owned business under a 0% tariff rate. Several months ago a 10% tariff was enacted for goods made in China. It was then doubled to 20%. In April a 34% tariff was added to the total, bringing us to 54%. Last night another 50% was added, and today (April 9th) an additional 21% was added, bringing us to 125% total tariffs on Chinese goods. Vietnam was to be subject to a 46% tariff, but it appears that this has been reduced to 10% for the next 90 days. These two countries manufacture 90% of the goods that we sell.

What is the Impact
This unfortunately is going to result in retail price increases on products impacted by the tariffs, including new and open pre-orders. We are working hard to minimize these increases through discussions with our vendors, deploying the most efficient importing processes, and ultimately sharing directly in the financial pain. I'm heartbroken to have to do this, and I hate this tariff situation: it is ridiculous, poorly thought out, poorly implemented, cruel and punishing to everyone involved in affected countries and at every level of our industry.

Who Pays Tariffs
Tariffs are a tax on the US consumer. Foreign governments do NOT pay these tariffs. The US based companies who import these goods are directly responsible for paying the tariffs. And ultimately, the US based consumer pays for them through higher product prices. We are devastated that it has come to this, and we will continue to work hard to minimize the impact to you.

When and How will Prices Change
In the past month we have raised prices in a manner that was inclusive of expected tariffs, while also honoring previously pre-ordered prices. Unfortunately, the dramatic increases in tariff levels has now made this approach impossible.

To minimize confusion during this rapidly changing situation, we will be changing newly affected pre-order product listings to reflect our normal, non-tariff-based price. We will also add a notice indicating that a tariff surcharge will be added at the time of the product's arrival. We will inform you of the full amount before your payment method is charged. You will also be able to cancel your pre-order at that time if the surcharge amount is something you do not wish to pay. Our customer service team, as always, will be ready to help with any issues that arise from this situation, and we will be very flexible given the circumstances. Today, we expect the surcharge may be between 15% to 40% of the pre-order price, however that could change as the situation continues to unfold. Please note that any items currently In Stock are not subject to the tariff.

We are working as fast as we can to make these changes clear on our site, but it will take us time. We have over 10,000 items listed for pre-order currently, and it is going to take us time to work through how each vendor will respond to their specific tariff situation. Our supply chain is complex and we have hundreds of vendors. The timing of when a particular tariff is applied will depend on a variety of factors including import shipping dates and any new rules set by the government. 

Finally
I absolutely hate increasing prices to you, but the tariff situation is beyond our control. If tariffs are reduced or removed, we will reduce or remove the tariff surcharges on orders accordingly. My pledge to you is that we will be fair, and we will share the pain of this. I assure you we are already feeling significant economic and business disruption pain from these tariffs. We will continue to work hard to serve you with the quality and customer service level you expect as we navigate through this difficult time.

I want to thank you deeply for all the trust and loyalty that you have placed in BBTS with your collecting passion. Whether you have recently joined our family or have been with us for years, we truly value our relationship with you and will do our best to continue to earn your trust every day.

Sincerely,
Joel Boblit
Founder and President

[Faelrin]

Makes me appreciate them even more. They have to do what they have to in order to survive this madness, but I appreciate they will be working on being transparent, and still give us the chance to cancel if we must. Good to know that in stock stuff isn't impacted either. Might need to take advantage of that when I can.

[Noideaforaname]

Mood:



Checking boxes to see where the toylines I buy are made:
Hammond Collection is Vietnam, so I guess maybe the upcoming Spino and Stego might just squeak by? Assuming nothing changes... again.
Beasts of the Mesozoic is China, so uh... glad I didn't back anything besides the Cyberzoic Achillobator.

[andrewsaurus rex]

It's hard to imagine how any retailer is going to be able to mitigate a 125% price increase.  But it is true that due to cost increases in Chinese labour a few years ago, many companies started using factories in other countries.  That may pay some unexpected dividends in the current climate.

But who knows what tomorrow will bring.  Nobody, not even the decision maker.

[thomasw100]

Just imagine how this chaos will affect for example a company like Lego, who produce different parts in different countries, and then these parts are packed in yet another country into sets like e.g. the new Jurassic World rebirth sets. So a set may contain parts manufactured in 3 or more countries. So how will then the tariffs be calculated? A weighted average based on the number and value of parts produced in different countries contained in a set? Or cumulative, like for every country where some parts of a set have been produced that tariff will be added so that in the end it comes out at 300 percent or something like that. I could think that the latter could be the preferred interpretation of those in charge of the tariffs.

[Blade-of-the-Moon]

So the tariffs for everyone but China was suspended for 90 days..and theirs was raised to 125%? This isnt about helping the U.S. anymore not that it ever really was.

I have lots of higher cost preorders from multiple Chinese companies and BBTS as well, I'm hesitant to cancel as I've paid deposits already.  Just not sure what to do. 

 I can reach out to Lana, but previously they said to wait and see if things changed?

[andrewsaurus rex]

I'd advise waiting and doing nothing at the moment.  The tariff situation is changing almost daily and sometimes more than once during a day.  Until there are legal, formal documents outlining exactly what the tariffs are on, when they start and how they are going to be administered, there are no concrete answers to specific questions.

I imagine there are hundreds of thousands of businesses in the US that are in a very similar position that BBTS is, from little one person outfits to Walmart.  If the Chinese tariffs do go ahead, within weeks the prices of goods made in China, from dinosaur toys to Smart Phones will nearly double in the US.  It won't take long for the backlash from that to cause change to tariff laws, if they have not already been rolled back.

[Shane]

... something about not putting all of one's eggs in one basket; easier said than done, of course!

It should go without saying, but larger companies are better at diversifying their manufacturing than small business, bigger operations like Hasbro and Mattel are able to duplicate molds over different factories in different locations and source multiple facilities in different countries. Not so easy for smaller businesses, which account for like 95% of toy manufacturers (BOTM as an example. Even NECA would probably be considered a small business. And of course Safari.)

[Shane]

Just imagine how this chaos will affect for example a company like Lego, who produce different parts in different countries, and then these parts are packed in yet another country into sets like e.g. the new Jurassic World rebirth sets. So a set may contain parts manufactured in 3 or more countries. So how will then the tariffs be calculated? A weighted average based on the number and value of parts produced in different countries contained in a set? Or cumulative, like for every country where some parts of a set have been produced that tariff will be added so that in the end it comes out at 300 percent or something like that. I could think that the latter could be the preferred interpretation of those in charge of the tariffs.

So, this is something that would have already been an issue for Lego or any company that sources from multiple countries. Typically if that's the case the country of origin is considered the one where the most significant change or development happens that makes the product "unique". If that sounds vague, it's because it is, and the manufacturer basically has to be able to justify their labeling (ie. you can't just have products made in China and then packaged in Spain, then say Spain is the country of origin). For something originating from many countries, Lego likely determines that something significant happens that is essential to the product at a specific location, and determines that to be the country of origin.

I don't know for sure this is what Lego does, I'm just speculating based on the current laws for determining country of origin.

[Over9K]

Well, let's see what happens when a collector orders directly out of China.

I made a dinosaur toy order from Lana Time Shop, totaling $35, and it is scheduled to ship today/tomorrow.

[Blade-of-the-Moon]

Well, let's see what happens when a collector orders directly out of China.

I made a dinosaur toy order from Lana Time Shop, totaling $35, and it is scheduled to ship today/tomorrow.

Yes I'm very curious to see how that turns out. 

My next "toy" from Lana right now is the Nanmu Therizinosaurus.  Which is supposedly releasing this month I think.

[andrewsaurus rex]

Me too.  I haven't seen any details on exactly what Chinese goods are being tariffed by the US.  It's possible toys are not included but that is pure speculation on my part; it's also possible that absolutely everything is being tariffed, but there usually are exemptions and carve outs.  US tariff rate on China sits a 145% at the moment (and China's retaliatory rate on US goods goes to 125% Saturday).

[Blade-of-the-Moon]

It already went up to 145%? Dear lord. This is pure insanity. Both sides should be working to eliminate tariffs not raise them.

[Joliezac]

Well, let's see what happens when a collector orders directly out of China.

I made a dinosaur toy order from Lana Time Shop, totaling $35, and it is scheduled to ship today/tomorrow.
 

Yes I'm very curious to see how that turns out. 

My next "toy" from Lana right now is the Nanmu Therizinosaurus.  Which is supposedly releasing this month I think.

I also have the Therizinosaurus on preorder. I was really looking forward to this one, but I already paid for it and I really can't afford to pay much more for it..

[Blade-of-the-Moon]

Well, let's see what happens when a collector orders directly out of China.

I made a dinosaur toy order from Lana Time Shop, totaling $35, and it is scheduled to ship today/tomorrow.
 

Yes I'm very curious to see how that turns out. 

My next "toy" from Lana right now is the Nanmu Therizinosaurus.  Which is supposedly releasing this month I think.

I also have the Therizinosaurus on preorder. I was really looking forward to this one, but I already paid for it and I really can't afford to pay much more for it..

See that's it.  I've already paid for several pieces including a 600.00 model kit.  I can just imagine that costing 145% more..  Lana has said they will try to eat some of the costs but that much is ridiculous.  I do expect they might allow me to just have them sit on it until things change?

[Joliezac]

Well, let's see what happens when a collector orders directly out of China.

I made a dinosaur toy order from Lana Time Shop, totaling $35, and it is scheduled to ship today/tomorrow.
 

Yes I'm very curious to see how that turns out. 

My next "toy" from Lana right now is the Nanmu Therizinosaurus.  Which is supposedly releasing this month I think.

I also have the Therizinosaurus on preorder. I was really looking forward to this one, but I already paid for it and I really can't afford to pay much more for it..

See that's it.  I've already paid for several pieces including a 600.00 model kit.  I can just imagine that costing 145% more..  Lana has said they will try to eat some of the costs but that much is ridiculous.  I do expect they might allow me to just have them sit on it until things change?

Yeah hopefully. I don't just want to cancel my preorder because I specifically preordered it so I could get the gift of the extra claws.

[Over9K]

Not gonna lie, I'm anxious to see what happens, but I figured won't get another chance to test this at such a low cost. Paying the entire 145% tariff on my own would take the $35 (free shipping) HLG Tyrannosaurus to $85.75 by my math. Honestly, I paid more than that for the W-Dragon "Stan", and the HLG looks every bit the equal to that figure.  So, while it would suck to have to pay the whole thing myself, it's not the end of the world, and knowing what's really going on has value.