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]

Core Viewpoint - The Yiwu small commodity market demonstrates strong market adaptability, significant product advantages, and risk diversification, allowing it to respond relatively calmly to unprecedented tariff wars [2][51]. Group 1: Market Response to Tariff Wars - The Yiwu market has shown resilience despite the tariff wars, with a notable recovery in trade with the U.S. as tariffs were temporarily eased [8][51]. - In 2024, Yiwu's import and export volume with the U.S. reached 91.07 billion yuan, accounting for 13.6% of its total trade, with a growth rate of 42.8% [13]. Group 2: Business Strategies and Attitudes - Three main attitudes among Yiwu merchants include aggressive market transformation, confidence in product irreplaceability, and a general indifference to the U.S. market due to its relatively low share in their overall business [12][26]. - Merchants are actively seeking to pivot towards the EU market and other regions, with strategies such as lowering prices and increasing production volume to maintain sales [18][39]. Group 3: Market Diversification - Many Yiwu businesses report that their U.S. market share is low, typically between 10% and 20%, leading to a limited focus on U.S. trade [26][27]. - The Yiwu market is increasingly looking towards emerging markets, with significant growth in trade with Africa, Latin America, and ASEAN countries, which now surpasses the U.S. market in scale [65][67]. Group 4: Challenges and Opportunities - The transition to new markets presents challenges, including adapting to different consumer expectations and regulatory requirements [45][61]. - Despite the difficulties, the shift towards emerging markets is seen as a long-term growth strategy, with many businesses optimistic about future opportunities in these regions [62][68].