Group 1 - The U.S. government has imposed tariffs on Chinese goods, with rates reaching as high as 145%, significantly increasing toy production costs and leading to reduced market supply and higher prices [1][3] - Despite a temporary reduction in tariffs in May, the toy industry is experiencing price increases, particularly for dolls, as manufacturers have no alternative but to pass on the increased costs to consumers [3] - The uncertainty surrounding U.S. tariff policies is exacerbating challenges for toy manufacturers, who are concerned about potential future increases in tariffs after a 90-day grace period [3] Group 2 - Small toy manufacturers are particularly hard-hit by tariffs, with some companies forced to raise doll prices by 10% to 30% and reduce production scale [3][4] - Approximately 90% of dolls sold in the U.S. are sourced from China, which has established itself as the primary production hub due to its labor cost advantages and skilled workforce [4] - Major retailers like Walmart are warning that tariffs are significantly impacting costs in the toy and electronics sectors, leading to higher prices for consumers despite any temporary tariff reductions [4]