US Tariff Impact on Indian Toy Exports: The effect of America’s 50 percent tariff imposed on India is visible. This has had a negative impact on many segments of Indian business. According to a report published in the Economic Times, Indian toy exports are seeing a decline due to American high tariffs.
New orders for Indian toys have reduced. However, the toy export business was doing good business at the beginning of the financial year 2025-26. American buyers had made advance purchases for the festive season, but suddenly there has been a change in this trend.
To balance the increased prices, Indian exporters have been forced to reduce the prices of toys and spend less on packaging. Let us know what the report says?
Exporters forced to reduce prices
Governing body member of Toy Association of India, Amitabh Kharbanda said that the booking of bicycles has halved during the festivals falling in the months of October to November. Experts in the toy industry say that due to the rise in prices due to tariffs, the sizes of toys have had to be reduced. Besides, the features have become less and the packaging has also become basic.
What does the report say?
According to KA Shabir, CEO of Funskool India, 25 percent tariff was imposed on India on August 1, after which it was reduced to 50 percent. This decision has had a direct impact on toy exports. Exporters have stopped receiving new orders. However, American buyers had already placed orders for the toys before the high tariffs imposed on China. In America, the shipment of festive season starts from the month of April itself.
Between April and August, the export of items related to festivals, decorations and entertainment increased by 4 percent to $ 101.9 million. During the same period, export of toys, games and sports items also increased by 8.9 percent to $302.6 million. America still remains the biggest market for these products.
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