1. What is the Hobby Industry Coalition? 

The Hobby Industry Coalition represents companies, educators, retailers, creators, and consumers across the U.S. toy and hobby sector. We advocate for fair, targeted trade policy that supports small businesses, protects educational access, and fosters innovation.

2. Why are tariffs a problem for hobby products?

Many hobby products—model trains, building kits, educational toys, and more—have been caught in broad tariff policies not designed for our industry. The result: higher prices, fewer options on shelves, disrupted supply chains, and stress on small businesses.

3. Which tariffs are affecting the hobby industry?

Three main types:

• Section 301 tariffs (25%) on goods from China
• IEEPA-based tariffs (up to 125%) tied to emergency trade powers
• Fentanyl-related tariffs (currently around 20%) misclassifying some hobby items

4. Do you oppose all tariffs?

No. We support fair trade enforcement. Our concern is with overreach—when low-risk consumer and educational goods are swept into high-risk categories without justification or due process.

5. What is your policy solution?

We are calling for:

• Reinstatement of Section 301 product exclusions
• HTSUS code corrections for misclassified goods
• A transparent review process for exemptions

6. How are these tariffs affecting families and schools?

Tariffs raise the cost of educational toys, hands-on learning tools, and creative hobby kits used in classrooms, STEM programs, and homes. They reduce availability, limit choice, and hurt affordability for children and educators.

7. How are small businesses impacted?

The toy and hobby industry is made up of thousands of small and family-owned businesses. Tariffs have disrupted their supply chains, increased prices, and in some cases, forced layoffs or closures.

8. What makes hobby products unique?

Unlike mass-market consumer goods, hobby products often serve educational, therapeutic, and community-building functions. They are used in classrooms, veteran therapy programs, museums, clubs, and creative spaces nationwide.

9. What can policymakers do?

Support the restoration of product exclusions, encourage HTSUS clarification, and work toward balanced trade policies that protect small businesses without sacrificing national goals.

10. What can I do to help?

• Sign the Petition for Fair Trade
• Contact your elected officials using our Take Action tools
• Spread the word on social media
• Support local hobby businesses during this critical period

11. Why does product development in the hobby industry make tariffs more disruptive?

Many toy and hobby products undergo extensive product development and R&D in the United States before production begins. This includes prototyping, design, engineering, and testing—often years in advance. These upfront investments are American-financed and made well before any tariffs are imposed, meaning the financial risk is already locked in when policy changes occur.

12. What are molds, and why do they matter in tariff discussions?

Molds are precision tools used to produce high-quality plastic or metal components. While they are typically manufactured and stored overseas due to specialized infrastructure, they are American-owned assets—financed by U.S. companies and depreciated under American tax law. When tariffs are imposed, these molds can become financially stranded and unusable.

13. What does it mean when molds become “stranded assets”?

When a new tariff is introduced, U.S. companies cannot easily relocate or replace overseas molds without significant cost. This creates stranded assets—investments that were responsibly made but are no longer viable due to tariff-induced barriers. The result is lost productivity, increased prices, and reduced product availability for consumers.

14. What is a “double whammy” tariff situation, and how does it affect U.S.-made parts?

Some manufacturers produce components in the U.S. and export them to overseas partners for final assembly. These American-made parts—like plastic shells or couplers—can face reciprocal tariffs when exported, and then U.S. tariffs again when re-imported. This stacking of tariffs inflates landed costs, discourages U.S. sourcing, and penalizes companies trying to maintain domestic production.

15. Can companies with foreign ownership, e.g. Europe or Asia, join the Coalition?

Yes. The Hobby Industry Coalition welcomes companies regardless of ownership structure or country of origin, provided they share our values and have a meaningful presence in the U.S.—through operations, workforce, customers, infrastructure, or educational engagement.
Our advocacy is based on shared purpose and domestic impact. What matters most is a demonstrated commitment to fair trade, educational opportunity, and the future of the U.S. toy and hobby industry.

16. Why are toys and hobbies classified together in the same tariff chapter (Chapter 95)?

Toys and hobby products are grouped together under Chapter 95 of the Harmonized Tariff Schedule of the United States (HTSUS) because they share key characteristics: both are intended for recreation, non-commercial use, and often involve modular or miniature components.

This classification originates from the Harmonized System (HS) developed by the World Customs Organization (WCO) in 1988, which guides global trade categories. The goal was to simplify tariff structures and ensure consistency by grouping goods based on function, not user age or audience.

While many hobby products—like model trains, dioramas, and scale kits—are clearly designed for adults and serve educational, historical, or therapeutic purposes, they remain in Chapter 95 due to their recreational use. Reclassifying them would require formal international coordination and legal justification. For this reason, most U.S. hobby manufacturers focus instead on targeted tariff relief and product-specific exclusions rather than attempting a full reclassification.

FAQ: May 28, 2025 Court of International Trade (CIT) Ruling

Q1: What did the CIT rule on May 28, 2025?

A: The U.S. Court of International Trade reaffirmed that only Congress—not the Executive Branch—has the constitutional authority to regulate foreign commerce. The ruling challenged the legal basis of certain Section 301 tariffs applied unilaterally by the Executive without clear statutory authorization.

Q2: Does this mean the current tariffs are invalid?

A: Not immediately. The ruling may be appealed and does not automatically remove or suspend existing tariffs. However, it casts legal doubt on how some tariffs have been imposed, strengthening arguments for reform and oversight.

Q3: How does this ruling affect the hobby and toy industries?

A: It highlights that tariff policies affecting non-sensitive goods—like model trains, toys, and educational hobby products—should be subject to proper legislative authority. The ruling reinforces our position that Congress must play a lead role in shaping fair and proportionate trade rules.

Q4: What is the Hobby Industry Coalition’s response?

A: The HIC continues to advocate for practical, bipartisan solutions. We support restoring congressional oversight and tailoring tariff policies to protect small businesses and the public interest—especially for goods used in education, therapy, and cultural engagement.

Q5: Does this change how the Executive Branch can act on tariffs?

A: The decision underscores that the Executive must operate within constitutional limits. While national security and trade enforcement remain Executive functions, broad tariff actions—especially those not rooted in national security—require congressional backing.

Q6: What happens next?

A: The ruling may be appealed to the U.S. Court of Appeals, and possibly the Supreme Court. Meanwhile, the decision will influence ongoing discussions in Congress, the Administration, and the courts about the scope of Executive trade authority.

Q7: How can I support the Coalition’s efforts?

A: Share our Tariff Position Paper, engage your elected officials, and stay informed through the HIC website and newsletter. Your voice helps reinforce the need for targeted, transparent, and lawful trade policy reform.

The information shared by the Hobby Industry Coalition is intended solely to inform members, stakeholders, and the broader industry about trade developments, policy changes, and regulatory matters. Nothing on this website or in Coalition communications should be construed as legal advice or a legal opinion. Readers are encouraged to consult qualified legal counsel before acting on any information provided. The Coalition is not a law firm and does not offer legal representation.

The Hobby Industry Coalition supports both advocacy and educational initiatives that advance understanding of the hobby industry's contributions to culture, community and learning. Some of these initiatives are non-advocacy in nature and developed in partnership with 501(c)(3) organizations. Where funding may be provided by charitable organizations, it is restricted to non-lobbying purposes and applied solely to programs consistent with those organizations' exempt purposes.