US tariffs squeeze India's toy exports—$400 million market at risk

Business Dec 25, 2025

Indian toy exporters project an 8-10% loss in exports to the US after American tariffs jumped from 25% to 50% this August.
The move, linked to sanctions on Russia, has left Indian factories like Micro Plastics Pvt Ltd sitting on millions in unsent toys and frozen orders.

US buyers turn elsewhere, Indian makers rethink strategy

With US orders down by half for the festive season—thanks to buyers shifting orders to China and Vietnam—Indian exporters are cutting prices and features just to keep up.
Now, they're eyeing India's own massive kids' market and pushing for lower GST rates, while also looking at new markets like Australia and Africa.
Supply chain hiccups with Chinese imports are still a headache, but manufacturers hope diversifying will help them bounce back.