By Mark Seavy

Amid the tariffs being imposed on goods imported into the U.S. from Canada, China, and Mexico, there was a focus on value at the recent New York Toy Fair.

A 25% tariff on goods from Canada and Mexico took effect Tuesday, while those for imports from China doubled to 20%. As a result, many toymakers are targeting value for their new products, though the approach to create value varied by company. For some toymakers, the focus is on categories that are lower cost, while others are choosing to evolve their strategies to include discount distribution channels.

Spin Master Corp., for example, recently redesigned a Paw Patrol playset to a smaller size before dropping the retail price to $59 (down from $89) to “match lower prices” in the category, CEO Max Rangel told analysts. Playmates Toys, meanwhile, reduced the price for its licensed core Cat Noir fashion dolls to $14.99 (down from $16.99) to make them “competitive” with rival products, said Karl Aaronian, SVP Marketing and Development at Playmates. And, after a five-year hiatus, Basic Fun! revived its 4.5-inch Mash’Ems collectibles as an exclusive for Five Below, priced at $5. Smaller two-inch figures carry a $2.99 retail price.

Even at the higher end, Funko’s Mondo brand was readying licensed Adventure Time collectible “squads” priced $125 to $150, down from the previous $225 to $275, said Mark Olsen, a Sales Manager at Mondo.

“We are, from a portfolio standpoint, trying to make sure we have the right amount of entry [price] points balanced with what the consumer would want in details, play value, and based on the consumer wallet and what they would be willing to spend,” Aaronian said.

Yet despite this emphasis on value, the amount consumers will pay for toys will likely increase starting in the fall, toy industry executives said. The wholesale prices will be adjusted mid-year, with discussions between retailers and suppliers about spring 2026 products starting in mid-March and continuing through April and May, according to industry executives.

Basic Fun!, for example, will likely increase a licensed Tonka product ($29.99) by $5 to $10 to account for the tariffs on goods imported from China, CEO Jay Foreman said. With the previously proposed 10% tariff, Basic Fun! had planned to absorb 3.5% of the cost with contract manufacturers while retailers accounted for the remainder.

About 80% of U.S. toys are manufactured in China, although companies have been moving production into other countries since President Trump first discussed tariffs in 2018. Mattel, for example, is targeting a plan to reduce the number of toys produced in China to 40% of its manufacturing mix, down from a current 50%, CEO Ynon Kreiz said.

“The tariffs may mean that we have to scale back the orders and that means less volume, lower margins and may result in us losing some customers,” said Brian Flynn, CEO at collectibles supplier Super7, which launched the Fun! Fun! line at Toy Fair featuring its first five-inch vinyl and plush figures.

Amid these pricing concerns, the licensed construction set category was in the spotlight at New York Toy Fair in the wake of Mattel (Brick Shop) and Jazwares (BLDR) launching new entries in the category. Category leader LEGO, meanwhile, introduced a new Bluey collection at the event. Moose Toys extended its Tile Town magnetic tile set with the addition of Bluey, while Funko expanded its Bitty Bop collectibles with a Bitty City set that features brands like Harry Potter, Bob’s Burgers, and SpongeBob SquarePants.

“The market share [in toy construction sets] is really owned by LEGO, but if you have a brand name and create something different, there is room in the market for another competitor,” said Hollie Holmes, VP of Global Licensing at Moose Toys.