Hasbr-uh-oh - Business and Tariffs Discussion

Platypus Prime said:

I'm not sure it would help, though I am not a tariff expert, I think the fact that the products are still made in China makes it so the tariff would apply even if you get it from a third party. If I'm wrong, GREAT! But if not, this is actually why the 'modern' versions of smuggling post-Prohibition weren't historically the norm, most smuggling operations were for normal but desirable products (household goods, luxury items, etc) that had high tariffs attached, so smugglers stepped in to get them to market without the markup, knowing they could charge less than legitimate channels and still turn a profit. I expect the same criminal cases involved in those will make a comeback to the companies that have shown a willingness to mislabel packages to get them in.

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Yeah, it doesn't matter where you import the product from - the tariff is based on where it was manufactured, not where you import it from. You import a Chinese-manufactured figure from Japan, somewhere in Europe, etc. Doesn't matter - the product was still made in China and therefore the seller has to put 'China' as the country of origin on the customs form and you will have to pay the tariffs either way.

Sure, a seller or even retailer could just lie (or just not understand what 'Country of Origin' means and put where they're selling it from - I've bought things from Japanese sellers on eBay where they put 'Japan' as the country of origin despite the products being made in China, presumably because they misunderstood it and thought it meant 'country the package itself is being shipped from' and not 'country where the product(s) in the package are manufactured in) and put a different country on the customs form and chances are, it'd go through fine because while yes - customs will sometimes randomly choose a package to open up to make sure what is declared on customs is accurate or if something is a bit suspicious

But there is always that chance (and while it's doubtful you'd get in trouble - other than having to pay the tariffs) there is the risk from the sellers that like I think they could get banned from shipping to the US or something? (Or like at the very least always marked for inspection I think)

I think there are a number of loopholes that are part of the process -- "made in __" doesn't necessarily (legally) ONLY mean "start-to-finish manufactured in __".

There are many cases where just the finishing touches (including sewing on the actual "made in __" tag) are done in that country, with the prior assembly and crafting done somewhere cheaper. The added shipping and whatnot are apparently still outweighed by the lower first-half production costs. So, bags and such that are 85% of the way assembled in China/Thailand/Vietnam/the Philippines, and then shipped to Italy to get final assembly and the Made in Italy tag or label sewn on, can legally be sold as Made in Italy.

But part of the problem is that other associated costs (materials, shipping) are also going to be kicked up directly or indirectly by this.

What I haven't heard anyone mention is packaging. It's shockingly hard to find a place in the USA that can print and make a decent full color box (learned this when the Celebriducks guy tried to make a rubber duck in the USA and documented how hard the process was). Imported parts get a lot of attention, like in autos, but almost all plastic and cardboard packaging, even for 'Made in USA' items, are made overseas and brought in to the country to be filled with their products. Our local WalMart managers noted that if they could not get in plastic bags from China, they might have to charge for them or simply not provide them, and that's WALMART, not a mom-and-pop shop.

Like.,,plastic grocery bags?

I legit forgot there are still places in this country where those are still a thing.

Not just grocery bags. I mean packaging in general. Almost all of it is made overseas.

Princess Viola said:

Like.,,plastic grocery bags?

I legit forgot there are still places in this country where those are still a thing.

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It gets me going out to visit my daughter in Baltimore that not only are plastic bags not a thing, but that they charge you for bags in general. When back here at home, the clerks will triple plastic bag one item because they "Don't want it to split open on you or something".

We Hoosiers will simply have to riot without our endless free plastic bags.

I do bring my own bags most of the time to avoid that btw. I do, however, keep a bag of plastic grocery bags that I use to pick up after my dogs when I take them for a walk. They do work well for that.

I haven't bought a trash bag in years. Grocery stores give you so many little bags for free.

Don't have the plastic bags up here so much, except occasionally with food delivery.

But at retail? Pretty much extinct.

In the UK, retailers by law had to charge for plastic bags from 2015 onwards. It apparently drastically reduced consumption of plastic bags, and many of the major retailers no longer even sell single-use bags.

There is a city here in Kansas, Lawrence, that has outlawed single use bags. It's a lovely gesture, but they're the only town that has done so.

Yeah, no more plastic bags in Canada (though I'm still working through my stockpile, so I haven't had to buy small garbage bags yet), and some stores don't even offer reusable bags.

As a direct result, knapsacks and fanny packs have made a comeback because we all need to carry multiple reusable bags at all times.

My home county in NY State got rid of plastic bags a few years ago. I've since lived in a couple different states and the cashiers look at my reusable bags with question marks over their heads. I just end up bagging my own groceries.

About toys: I poked my head into the dinosaur toy community recently. A lot of their toys come from Chinese companies. There are some folks saying they're cancelling orders with the Chinese companies and ordering the toys through an Australian store, because Australian tariffs are less. But that doesn't jive with what's being said in this thread.

Also, it hit me just now that I have a Takara Masterpiece pre-order from BBTS due second quarter, and that's gonna suck, isn't it? Basically going to have to cancel that one, aren't I? I guess it depends on where those are manufactured. I have no idea.

BBTS just sent out an e-mail saying they'e removed the baked in tariff prices on orders and will just add it in at the time of shipping because thigns are so chaotic now they don't know what the tariff will actually be once the items ship. They also say that you can cancel the preorder after the tariffs get applied if you don't want to pay that much more.

Figured I might as well just post the e-mail.

Hello,

Thank you for pre-ordering from BigBadToyStore!

We have updated the price of one or more items that you currently have on pre-order to display our standard product price excluding tariff surcharges. Your previous price had included an assumed tariff surcharge. Given the rapidly changing tariff situation that tariff surcharge is no longer accurate.

The final price of your pre-order will include the actual tariff surcharge based on the evolving tariff situation. You will know the full amount before your payment method is charged. You will also be able to cancel your pre-order at that time if that surcharge is something you are not willing to pay. Our Customer Service team, as always, will be ready to help with any issues that arise from this situation, and we will be very flexible given the circumstances.

We are sorry for the confusion this is causing. We share in the frustration and concern around tariffs increasing the cost of enjoying our favorite passion of collecting.

If you have any questions regarding this notice, please contact Customer Service for assistance. You may also go to www.BigBadToyStore.com/tariffs for our latest updates.

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I really feel sorry for BBTS, TFSource, and the others. These are not easy times and their margins are, I'm sure, thin enough. Now add this 'will he or won't he' bullshit and it's gotta be a new exercise in frustration every day.

CrockAlley said:

About toys: I poked my head into the dinosaur toy community recently. A lot of their toys come from Chinese companies. There are some folks saying they're cancelling orders with the Chinese companies and ordering the toys through an Australian store, because Australian tariffs are less. But that doesn't jive with what's being said in this thread.

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to be fair

people are friggin stupid and lots of people genuinely don't understand how tariffs work

like the president

Princess Viola said:

to be fair

people are friggin stupid and lots of people genuinely don't understand how tariffs work

like the president

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That is substantiated by my interactions over there. Some folks believe shipping Chinese toys from a UK store to the US won't incur tariffs because tariffs are "based on country of origin."

Remember much earlier in this thread when we found out that John Warden had been let go from Hasbro?

Well, we now have a follow up to that story. He's now with The Loyal Subjects:

Hi Everyone!

I am so excited to be part of the powerhouse team at TLS Toy under the wise leadership of Dina Al Rifai, Ben Montano, and Jonathan Cathey.

As many of you already know, I come from an “Action Brands” background, but my experiences over the years have also included Pokemon, Shrek, and some Anime Properties. I am excited to dive into the TLS suite of brands!

As I mentioned to Jonathan, Ben, and Dina - I feel that TLS is uniquely positioned to move on trends. Our industry is moving faster than ever, and sometimes big companies have a hard time keeping up with smaller and more flexible teams.

Recognizing trends, memes, and pop-culture moments quickly is the key to unlocking new consumers as well as diving deeper into the psyche of our collectors/kid-adult fans. We live in changing times, and being able to buy a toy, keychain, or plush to connect with other fans (young or old) brings all of us comfort. Toys have a magical way of bringing all of us together.

In my new role, I will be bringing new play and excitement to Nostalgic brands like MASK, while paving the way for new brands of the future!

I am excited to make magic with all of you! #theloyalsubjects #tlstoy #mask #mobilearmoredstrikekommand #mypetmonster #jem #popples #popplesvintage #keeptoystarifffree

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