US Tariff Shock! Indian Toy Orders Decline, Exporters Forced to Reduce Prices

The impact of the 50 percent tariff imposed by the US on India is being felt. According to a report, Indian toy exports are declining due to the high US tariffs.

US Tariff Impact on Indian Toy Exports: The impact of the 50 percent tariff imposed by the US on India is being felt. This has negatively impacted many segments of Indian trade. According to a report published in the Economic Times, Indian toy exports are declining due to the high US tariffs.

New orders for Indian toys have decreased. Although the toy export business was doing well at the beginning of the financial year 2025-26, American buyers had made advance purchases for the festive season, and this trend has suddenly changed.

To offset the increased prices, Indian exporters have been forced to reduce toy prices and spend less on packaging. Let's find out what the report says.

Exporters forced to reduce prices

Amitabh Kharbanda, a governing body member of the Toy Association of India, stated that bookings for bicycles during the festive season from October to November have halved. Toy industry experts say that the price hike due to tariffs has led to toy sizes being reduced, features being reduced, and packaging becoming more basic.

What does the report say?

According to KA Shabir, CEO of Funskool India, a 25 percent tariff was imposed on India on August 1st, which was later increased to 50 percent. This decision has directly impacted toy exports. Exporters have stopped receiving new orders. However, American buyers had already placed toy orders before the high tariffs on China. In the US, festive season shipments begin in April.

Between April and August, exports of festive, decorative, and entertainment items increased by 4 percent to $101.9 million. Meanwhile, exports of toys, games, and sports items increased by 8.9 percent to $302.6 million. The United States remains the largest market for these products.