Toy Association Urges USTR for Tariff-Free Imports Amid July Policy Shifts
On July 13, 2026, The Toy Association submitted three formal comments to the Office of the U.S. Trade Representative (USTR) regarding trade policy proposals[cite: 1]. The request focuses on maintaining tariff-free treatment for toys to support supply chains and protect U.S. businesses[cite: 1]. This news comes at an important time for importers, because the 10% Section 122 tariff on imported plush toys is scheduled to expire around July 24, 2026[cite: 2].
The Current Tariff Burden on Plush Toys
For buyers importing from China, the total tariff on plush toys is currently 17.5%[cite: 2]. This includes a 7.5% Section 301 List 4A surcharge and the 10% Section 122 tariff added earlier in 2026[cite: 2]. Because the base tariff rate on toys is usually 0%, this 17.5% is the entire extra duty cost[cite: 2]. If the Section 122 tariff expires without a replacement, goods shipped after the expiration date could return to lower rates[cite: 2]. However, trade policies change often, so buyers should not build long-term cost plans based only on expiration dates[cite: 2].
How B2B Buyers Should Manage Tariff Risks
What is the best strategy for B2B buyers to handle US plush toy tariffs?
Buyers should protect their margins by negotiating base manufacturing costs instead of waiting for tariffs to expire[cite: 2]. A practical step is to run pilot orders with factories outside of China, such as in Vietnam or Indonesia, to check landed costs and quality[cite: 2]. Buyers should also find out which items can handle price increases[cite: 2]. Premium or limited-edition items absorb higher prices better than standard, fast-selling products[cite: 2]. Finally, if a factory offers fixed production slots, buyers should lock in forward pricing before policies change again[cite: 2].
Working with an experienced manufacturer helps control these costs. Whether you are developing custom plush merchandise for a corporate campaign or building a retail line of custom plush animals, transparent pricing at the factory level provides a defense against unexpected import duties.
Sources
- [1] The Toy Association, "Toy Association Calls for Tariff-Free Treatment of Toys in Latest USTR Comments" (July 13, 2026). https://www.toyassociation.org/ta/PressRoom2/advocacy-news.aspx
- [2] Plush Toys Factory, "US China Tariffs and Plush Toys in 2026: What Every B2B Buyer Must Know". https://plushtoys-factory.com/us-china-tariffs-plush-toys-b2b-guide-2026/
