Toy Prices Jump 6.6% Ahead of the Holidays as Tariffs and Iran War Costs Hit Store Shelves

NEW YORK, Oct. 16 (TodayViralUSA) — Toy prices in the United States are climbing quickly just as families begin holiday shopping, with tariffs on Chinese-made goods and higher oil-linked costs from the Iran war both feeding into what shoppers will pay on store shelves.

Prices for toys, games, hobbies and playground equipment rose 4.2% from August to September on a seasonally adjusted basis and were up 6.6% from a year earlier, according to the latest Consumer Price Index from the Bureau of Labor Statistics. The monthly increase outpaced other consumer categories, including apparel and footwear, which also rose.

Tariffs and plastics in the mix

Most toys sold in the U.S. are made in China, leaving the industry exposed to shifting trade policy. Tariffs on Chinese imports have eased from their peak of 145% in early 2025, and Washington and Beijing agreed in late September to cut duties on $30 billion of goods each way. But industry executives say the goods arriving this fall were priced months ago under higher rates.

“Tariffs add a noticeable cost to toys and other goods,” Jay Foreman, chief executive of Tonka and Care Bears maker Basic Fun, told Reuters, adding that lower rates should bring prices down over time “as long as other global issues subside.”

Because most toys are made from petroleum-based plastics, the Middle East conflict is adding pressure. Rick Woldenberg, chief executive of Learning Resources, said in an interview published by Transport Topics that factories in China, Vietnam and India have seen prices for materials such as low-density polyethylene rise by as much as 55%, prompting his company to buy about a month of supply early. “The impact from the Iran conflict on commodity costs and shipping costs will certainly persist for the next several quarters,” David Silverman, a senior director at Fitch Ratings, told Reuters.

Shoppers already stretched

The toy jump comes amid broader price pressure: overall consumer prices rose 0.6% in September and 3.7% over 12 months, with gasoline accounting for more than half of the monthly gain. Mattel has cited “moderate inflationary pressures” tied to the Middle East, and Hasbro has said it absorbed higher input costs.

Consumers are entering the season cautious. Forty-five percent describe their household finances as insecure heading into the holidays, and more than 70% say saving money is a priority, according to an Ibotta survey cited by Retail Dive. A Reuters/Ipsos poll through Oct. 5 found just 21% of voters approve of President Donald Trump’s handling of the cost of living.