US Tariffs on Toys & Games

What This Covers

The toys and games surcharge covers toys, games, sporting goods, and recreational equipment classified under HTS chapter 95. Most toys enter the US at a 0% base tariff rate, keeping imported toys affordable for American families. Section 301 List 4A imposed a 7.5% tariff on Chinese-origin toys, which remains in effect after the Supreme Court ruling. The 10% Section 122 tariff (effective February 24, 2026, expiring ~July 24, 2026) now applies uniformly to all toy-exporting countries, replacing the wildly different IEEPA reciprocal rates that had upended the toy industry's supply chain calculations.

Most Affected Countries

China, manufacturing over 80% of the world's toys, faces a 7.5% Section 301 List 4A surcharge plus the 10% Section 122 tariff, for a combined rate of 17.5% on what was once a duty-free category. Vietnam, which had emerged as the primary alternative for toy manufacturing, is perhaps the single biggest beneficiary of the SCOTUS ruling in consumer goods — its rate dropped from a devastating 46% IEEPA tariff to just 10% under Section 122, saving toy importers over $7 on a $20 toy. Indonesia, India, and Thailand now all face the same 10% Section 122 rate, making the entire Southeast Asian manufacturing region uniformly accessible for toy production.

How Surcharges Stack

Chinese toys face a 0% base rate plus the 7.5% Section 301 List 4A surcharge plus the 10% Section 122 tariff, for a combined 17.5%. A $20 toy from Vietnam now faces only the 10% Section 122 tariff on top of the 0% base rate, adding $2 to the landed cost — compared to over $9 under the old 46% IEEPA rate. This means Vietnamese toys are now substantially cheaper than Chinese alternatives, flipping the cost equation that had briefly made Vietnam more expensive than China. Toys from Mexico enter duty-free under USMCA, maintaining the best tariff position. Taiwan, Indonesia, and all other source countries face the same 10% Section 122 rate, creating a uniform cost structure outside of China and USMCA partners. Section 122 expires around July 24, 2026.

Sourcing Strategies

The SCOTUS ruling has restored Vietnam's position as the most cost-effective alternative to China for toy manufacturing, with a 10% rate well below China's 17.5% combined burden. Companies that had paused or reversed their China-to-Vietnam production shifts should resume those plans. Mexico offers duty-free access under USMCA and remains attractive for plastic injection molding and assembly operations serving the US market. The uniform 10% rate across all non-China sources means toy companies can select manufacturing partners based on capability and cost rather than tariff optimization. With Section 122 set to expire around July 2026, importers should prepare for the possibility that non-China toys could once again enter essentially duty-free, making this period ideal for securing long-term production partnerships in Vietnam and other Southeast Asian countries.