As somebody who consumes information the way in which others devour sports activities, this previous week delivered a trio of phrases I’d be comfortable to by no means hear once more: Sean ‘Diddy’ Combs. That ongoing saga has nothing to do with the toy business, but it surely does lead me to a fourth phrase I feel we’d all wish to see retired from the nationwide dialog: Tariffs.
Because the U.S. toy business takes a much-needed breather for the Fourth of July, the shadow of President Donald J. Trump’s so-called “Liberation Day” tariffs continues to loom. The 90-day pause on these taxes ends subsequent week — and the outlook isn’t getting brighter.
Within the final 36 hours, President Trump took to Truth Social to announce a brand new commerce deal between the U.S. and Vietnam — a key area as corporations shift sourcing outdoors of China. In response to Trump, U.S. imports from Vietnam will now be slapped with a 20% tariff, whereas Vietnamese imports of American items will are available in with “zero tariff.” Moreover, items transshipped from China by Vietnam to keep away from tariffs will now face a 40% tariff — a direct strike in opposition to a workaround many corporations have utilized in latest months.
However right here’s the rub: actuality and rhetoric are miles aside.
“Vietnam pays the US a 20% tariff on any and all items despatched into our territory,” Trump claimed. That line, echoed repeatedly by his crew — together with White Home Deputy Chief of Workers Stephen Miller and Secretary of Commerce Howard Lutnick — is just not true.
Let me be clear, once more: different nations will not be paying these tariffs. U.S. importers pay them. And irrespective of how intelligent the mitigation methods, the top consequence is similar: increased costs for American shoppers.
Chances are you’ll not agree with that assertion. You won’t wish to hear it. However that doesn’t make it any much less true. Repeating misinformation doesn’t change details; it solely blurs the road between notion and actuality.
Tariffs are taxes. We pay them. Not Vietnam. Not China. Not anybody else.
As we have fun Independence Day, let’s not neglect what “Liberation Day” has value us: jobs, financial savings, and livelihoods, particularly within the toy business.
Blended Messaging within the Job Market
Within the personal sector, ADP reports a loss of 33,000 jobs final month, an enormous swing from the anticipated 95,000 acquire. In the meantime, the U.S. Division of Labor reported a acquire of 147,000 nonfarm payroll jobs in the identical interval. Conflicting information? Positive. However each will be true, relying on who’s counting and the way.
It’s a basic case of robbing Peter to pay Paul — shifting numbers from one column to a different.
For the toy business — the place 96% of corporations are small companies — this 12 months has quietly turn into one of the brutal in latest reminiscence. Personally, I’ve by no means identified so many individuals in search of work on the identical time. A cursory scroll by the LinkedIn feed is a blur of inexperienced “Open to Work” graphics, and it’s painful to see.
Hundreds of jobs have disappeared throughout corporations of all sizes. And it’s not simply us. Adjoining industries are bleeding too. Microsoft simply slashed 9,000 jobs, canceling a number of tasks throughout Xbox and different platforms.
This Independence Day, the one factor bursting in air is perhaps revenue margins. The combat for financial freedom is actual, and the fuse is burning quick.
At The Toy Book, we all know that challenges come and go, however the pulse of play retains beating. This Fourth of July, let’s have fun not simply our independence, however the endurance of the business we love.
The publish From the Editor: Red, White, and Bruised appeared first on The Toy Book.
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