Hello,
We were encouraged to learn of the recent announcement regarding the temporary reduction of China tariffs to 30% for a period of 90 days, as negotiations between the United States and China continue. While this represents a significant decrease from the most recent rate of 145%, it remains above the 20% level that we had been actively working to address earlier this year.
According to the current policy, the tariff is scheduled to increase to 54% following the 90-day period. While we remain hopeful that ongoing negotiations will result in a longer-term solution that maintains or further reduces the tariff, the situation remains fluid and unpredictable. Unfortunately, this continued uncertainty presents ongoing challenges for the toy industry—particularly for small businesses and, most importantly, our valued customers.
The reduced tariff rate will take effect on Wednesday, May 14, 2025. However, many details remain unclear. We are actively working with our vendors and supply chain partners to assess the implications on cost structures and delivery timelines in both the short and medium term. Encouragingly, we are beginning to see movement in shipments, though we anticipate greater clarity around timing in the coming days.
We will continue to keep you informed as more specific information becomes available.
Thank you, as always, for your support.
Frequently Asked Questions.
Q: What are tariffs, and how do they impact the orders from the Hobbyholics?
A: Tariffs are taxes imposed on goods imported from other countries. For over a decade, Hobbyholics has operated as a family-owned business in an environment free from import tariffs. However, in recent months, new tariffs have been implemented on products sourced from nearly all major manufacturing regions, with rates that have fluctuated significantly. Tariffs on goods imported from China, for example, were initially set at 10% but have since risen to as high as 145%. Imports from Vietnam are currently subject to a 10% tariff. These two countries collectively account for approximately 90% of the products in our catalog.
It is important to clarify that these tariffs are not paid by foreign governments. Rather, they are the responsibility of U.S.-based importers such as Hobbyholics. The resulting increase in costs may be passed on to retailers and, ultimately, to consumers through higher retail prices.
Q: How will these tariffs affect product prices?
B: The imposed tariffs apply to all goods imported from the affected countries, which includes the vast majority of new and existing pre-orders. Products that were already received and placed into our inventory prior to the implementation of these tariffs ("in-stock" items) are not subject to the new rates. However, any future restocking of these items will be affected by the current tariff structure.
Regrettably, the scale of these tariffs necessitates adjustments to our retail pricing. For new and open pre-orders, we anticipate price increases ranging from approximately 15% to 40%. Please be assured that we are actively working to mitigate the impact of these increases through ongoing negotiations with our vendor partners and by optimizing our import and supply chain processes.
Q: When will price changes on pre-orders take effect, and how will they be communicated?
C: Given the highly fluid nature of the tariff environment, we are implementing a revised approach to pre-order pricing. Moving forward, pre-orders will be listed at the base price, exclusive of any applicable tariff surcharge. These listings will include a note stating: “Excludes Tariff Surcharge.”
Once an item is received and the applicable tariff rate is confirmed, the corresponding surcharge will be added to the order. Prior to processing any payments, customers will be notified of the final total price, including the tariff surcharge, and will be given the option to cancel their order at that time, should they choose to do so.
We appreciate your understanding and continued support as we navigate these challenges, and we will keep you informed with updates as they become available.