SAN DIEGO – Amid the colorful chaos of Comic-Con, small business owners gathered for an unlikely discussion: the economic fallout of former President Donald Trump’s proposed tariffs on the toy industry.
“Not the sexiest topic,” admitted Jonathan Cathey, CEO of collectibles company The Loyal Subjects, during a panel titled “Toys, Tariffs, and Trade Wars.” “But this affects all of you—prices will go up, and sales will drop.”
The industry is bracing for impact as Trump pushes for sweeping tariffs, particularly on Chinese imports. Of the $17 billion in toys shipped to the U.S. last year, over $13 billion came from China. Panelists warned that escalating trade tensions could disrupt supply chains and force price hikes.
“Chaos and Uncertainty” for Small Businesses
Brian Flynn of collectibles brand Super7 said Trump’s ever-shifting tariff policies have left companies in limbo. “Nobody knows what’s going to happen,” he said, adding that triple-digit tariffs—which Trump has floated—would “drive everyone out of the market.”
Flynn said the financial strain was already evident at Comic-Con, where he scaled back from a full exhibit to a small booth. “Consumers will feel this next quarter,” he warned. “And when it hits, it’s going to hurt.”
“Bringing Jobs Back” vs. Economic Reality
Trump has defended his trade policies by arguing they boost U.S. manufacturing, but Cathey pushed back. “There are 480,000 unfilled factory jobs,” he said. “We can’t magically bring back jobs nobody’s there to do.”
Instead, he argued, America’s strength lies in innovation—not low-cost production. “Tariffs make sense for cars or mining, where they protect jobs and national security,” Cathey said. “But Barbie? Not so much.”
With the threat of new tariffs looming, toy companies fear a lose-lose scenario: higher costs for businesses and higher prices for fans. As the trade war rhetoric heats up, the industry is hoping for a plot twist—before the next wave of tariffs takes effect.