The Toy Aisle is About to Get More Expensive

The toy aisle is about to get more expensive. President Donald Trump expanded his trade war this week, placing a 10% baseline tariff on almost every country and much steeper levies on dozens of others. Among those hit with higher tariffs were China and Vietnam — two nations that are vital to the domestic toy industry.

Impact on the Toy Industry

For decades, U.S. toy companies have worked with Chinese manufacturers to bring the hottest action figures, dolls and games to retail shelves. Vietnam became a solid secondary market for companies looking to diversify their factory locations amid growing trade tensions between Washington and Beijing. Trump slapped China with an additional 34% duty Wednesday, bringing the total tax on goods from the nation to 54%, and hit Vietnam with a 46% tariff. The levy is far higher than what toy companies expected and could lead to massive price hikes on toys, industry experts said.

Reaction from the Industry

"Everyone is really in scramble mode," Greg Ahearn, president and CEO of The Toy Association, told CNBC. "This is going to have massive negative repercussions for the consumer and for our industry." Adding to the tensions, China is set to impose a retaliatory 34% levy on all U.S. products, its commerce ministry announced Friday.

Tariff Impacts on Toy Companies

Around 77% of toys imported into the United States come from China, according to data from The Toy Association. Vietnam is third, just behind Mexico. Trump previously placed a 25% tariff on goods from Mexico that aren’t compliant with the United States-Mexico-Canada Agreement. Hasbro and Mattel, leaders in the toy space, both incorporated a 20% tariff impact from China in their guidance projections for 2025 and had strategies in place to shift production to other countries, like Vietnam, Indonesia and India, all three of which were also hit with tariffs — 46%, 32% and 26%, respectively.

Financial Implications

"As a result, relocating production may not be financially viable," wrote Eric Handler, analyst at Roth, in a research note to investors published Thursday. "The consumer should soon see price increases to partially offset the tariff impact." Hasbro and Mattel report first-quarter earnings this month, and Handler said investors will likely see guidance cuts from both companies. Toy companies have already been slammed on Wall Street in the wake of the tariff announcement. Mattel shares fell more than 16.5% in Thursday trading, Hasbro lost more than 12% and Funko, which also has manufacturing in China and Vietnam, saw its stock plummet 18%.

Expected Price Increases

While Handler expects companies to try and lower costs through contract renegotiations with manufacturers and, perhaps, even altering packaging to improve margins, he said there is little doubt that consumers will bear the brunt of Trump’s duties. "You could have anywhere from 35% to potentially even a point-for-point price increase on products depending upon what margin those products run at," The Toy Association’s Ahearn said. "It may actually just be a 50% price increase, given it’s a 54% tariff." Most toy margins are in the high single digits, he noted. So, there is very little wiggle room for companies to absorb these fees.

Conclusion

The increased tariffs on Chinese and Vietnamese goods will have a significant impact on the toy industry, leading to higher prices for consumers. The Toy Association expects price hikes to coincide with this year’s back-to-school season. "There’s no place for it to go, but to the consumer," Ahearn said, noting that "The greatest budgetary impact on are the folks, unfortunately, who can afford it the least."

FAQs

Q: What is the main reason for the expected price increase in toys?
A: The main reason is the increased tariffs on Chinese and Vietnamese goods imposed by President Donald Trump.
Q: Which countries are most affected by the tariffs?
A: China and Vietnam are the most affected countries, with tariffs of 54% and 46%, respectively.
Q: How will the tariffs affect toy companies?
A: The tariffs will lead to higher costs for toy companies, which will likely be passed on to consumers in the form of higher prices.
Q: When can consumers expect to see price increases?
A: Price increases are expected to coincide with this year’s back-to-school season.
Q: Which toy companies will be most affected by the tariffs?
A: Hasbro, Mattel, and Funko are among the toy companies that will be most affected by the tariffs.

An aerial view of the Centers for Medicare & Medicaid Services (CMS) building on March 19, 2025, in Woodlawn, Maryland, symbolizes more than just federal oversight—it now marks a pivotal moment of transition, uncertainty, and concern within one of the nation’s most vital healthcare agencies.

CMS Faces Cuts Under Kennedy’s HHS Restructuring Plan

The Centers for Medicare & Medicaid Services has experienced job cuts as part of a broader plan initiated by Robert F. Kennedy Jr. to restructure the Department of Health and Human Services (HHS). These changes were communicated during a virtual all-hands meeting held on Friday, led by CMS Acting Administrator Stephanie Carlton.

The internal meeting was the agency’s first since HHS employees began receiving notifications earlier in the week about job losses. Carlton confirmed that several specific CMS offices were impacted under this sweeping reorganization, even as she emphasized efforts to minimize the impact.

Scale of the Restructuring

Kennedy’s plan includes the elimination of 10,000 jobs across HHS. While CMS accounts for just 300 of those positions, the effects remain significant. CMS plays a critical role in administering Medicare and Medicaid programs for over 160 million Americans. Despite reassurances from the Trump administration that the changes would not affect Medicare services, concern remains high across the agency.

Kennedy acknowledged the possibility of reinstating some personnel and programs, admitting that mistakes are inevitable. However, Carlton did not confirm any plans for reinstatement within CMS, noting instead that the “painful part” of the cuts appeared to be over.

Offices Impacted by the Cuts

Office of Minority Health

Among the most notable cuts were those within the CMS Office of Minority Health. This office was established under the Affordable Care Act and plays a crucial role in addressing health disparities affecting minority populations. It partners with local and federal entities to research solutions that reduce healthcare costs, prevent disease, and improve chronic disease outcomes.

The legality of completely eliminating this office is in question due to its statutory foundation. Carlton emphasized that CMS is committed to continuing its responsibilities under the law and plans to appoint a new director for the office. However, it remains unclear whether Dr. Martin Mendoza, the current director, was directly affected by the layoffs.

Office of Program Operations & Local Engagement

Carlton described this office as “probably the biggest group that was affected.” The office is responsible for implementing Medicare and Medicaid programs and fostering local stakeholder engagement. The restructuring targeted overlapping functions among various divisions within the office.

Other Offices Affected

Several other CMS functions experienced staff reductions:

• Grants and Contracts Management Office: This office, responsible for overseeing CMS’s financial partnerships, was among those affected.

• Medicare-Medicaid Coordination Office: Tasked with improving care coordination for individuals eligible for both Medicare and Medicaid, this office also saw staffing changes. Some of its functions will be reassigned either within CMS or to external entities.

Offices Retained

Carlton assured employees that CMS would maintain its internal teams handling:

• Communications

• Human Resources

• Information Technology

The IT department, in particular, remains intact due to the critical nature of the data it manages.

Leadership Transition

Carlton also informed staff that Dr. Mehmet Oz’s paperwork was expected to be finalized later that day. Confirmed by the Senate to lead CMS, Oz is scheduled to host another all-hands meeting the following Monday. Known widely as “America’s Doctor,” Oz brings both media recognition and controversy due to past endorsements of unproven medical treatments.

Context of the Cuts

These layoffs come on top of a wave of voluntary departures from HHS since President Donald Trump returned to office. About 10,000 employees had already opted to leave through early separation offers. With Kennedy’s additional reductions, HHS’s total workforce will shrink by approximately 25%, from 82,000 to 62,000 employees.

The restructuring occurs during a precarious time for public health. The nation is contending with its most severe measles outbreak in over 20 years, and avian influenza continues to spread among birds, livestock, and humans. The U.S. Food and Drug Administration has reportedly paused efforts to strengthen testing for bird flu in dairy and pet food due to its own staff cuts.

Conclusion

The job cuts at CMS reflect a deeper and more controversial reshaping of federal healthcare oversight. While the agency’s leadership asserts that the most painful cuts are now behind them, the long-term impact on program delivery, community engagement, and minority health initiatives remains uncertain. With new leadership under Dr. Mehmet Oz and a reduced workforce, CMS must now navigate its mission in a dramatically altered federal landscape.

FAQs

What is the reason behind the CMS job cuts?

The job cuts are part of Robert F. Kennedy Jr.’s larger plan to restructure the Department of Health and Human Services, aimed at improving efficiency and reducing the overall size of the federal health workforce.

How many CMS jobs were cut?

Approximately 300 positions were cut at CMS, part of a broader 10,000 job reduction across HHS.

Was the Office of Minority Health eliminated?

While the Office of Minority Health was impacted, CMS has stated it will continue fulfilling its legal obligations and plans to appoint a new director. However, the future structure and capacity of the office remain unclear.

Who is the new CMS Administrator?

Dr. Mehmet Oz, a former television host and U.S. Senate candidate, has been confirmed by the Senate to lead CMS. His paperwork is expected to be finalized shortly.

How will these changes affect Medicare and Medicaid?

While CMS leadership has downplayed the impact, the job cuts in program operations and coordination could affect the implementation and oversight of Medicare and Medicaid services, especially at the local level. Some responsibilities may be shifted internally or to external partners.

Are more job cuts expected at CMS?

According to Acting Administrator Stephanie Carlton, the current round of cuts is believed to be complete. However, she did not rule out future changes.

Boeing CEO Outlines Plan to Address Safety Concerns

Boeing CEO Kelly Ortberg testified before the Senate Commerce, Science, and Transportation Committee on Wednesday, outlining the company’s progress on improving its manufacturing and safety standards. The hearing comes after a January 2024 mid-air emergency involving a new 737 MAX, which left Boeing’s factory without key bolts installed.

Ortberg faced questions from lawmakers about how the company will ensure that it doesn’t repeat past accidents or manufacturing defects. Senator Ted Cruz, the committee’s chairman, invited Boeing managers and factory workers to report to him their opinions on the company’s turnaround plan.

Boeing’s Commitment to Safety

Ortberg acknowledged that Boeing still has more to do, but emphasized the company’s commitment to safety. "Boeing has made serious missteps in recent years — and it is unacceptable. In response, we have made sweeping changes to the people, processes, and overall structure of our company," he said. "While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services."

Improvements Across Manufacturing Lines

Ortberg and other Boeing executives have outlined improvements across the manufacturer’s production lines in recent months, including a contract worth more than $20 billion to build the United States’ next generation fighter jet. However, lawmakers and regulators have maintained heightened scrutiny on the company, a top U.S. exporter.

Federal Aviation Administration Oversight

The Federal Aviation Administration (FAA) capped Boeing’s production of its 737 Max planes at 38 a month following the January 2024 door plug blowout. The agency plans to keep that limit in place, though Boeing is producing below that level. Acting FAA Administrator Chris Rocheleau said at a Senate hearing last week that the agency’s oversight of the company "extends to ongoing monitoring of Boeing’s manufacturing practices, maintenance procedures, and software updates."

Conclusion

Boeing’s commitment to addressing safety concerns is a critical step in rebuilding trust with lawmakers, regulators, and the public. While the company still faces challenges, its progress on improving manufacturing and safety standards is an important step forward.

Frequently Asked Questions

Q: What is Boeing’s plan to address safety concerns?
A: Boeing CEO Kelly Ortberg outlined the company’s plan to improve manufacturing and safety standards, including sweeping changes to the company’s people, processes, and overall structure.

Q: What is the Federal Aviation Administration’s role in overseeing Boeing?
A: The FAA is responsible for monitoring Boeing’s manufacturing practices, maintenance procedures, and software updates, and has capped the company’s production of its 737 Max planes at 38 a month.

Q: What is Boeing’s production rate of 737 Max planes expected to be in 2025?
A: Boeing CEO Kelly Ortberg said the company could produce up to 38 737 Max planes a month this year, but would not push the production line if it’s not stable.