"Trade Policy at a Crossroads: Safeguarding the Toy & Hobby Industry"
Prepared by Hobby Industry Coalition
Acknowledgment
The Hobby Industry Coalition gratefully acknowledges the many individuals and companies across the toy and hobby sectors who contributed their time, insight, and dedication to the development of this Tariff Position Paper and the formation of the Coalition itself.
Special thanks are extended to Jason Shron, President of Rapido Trains, and Shane Wilson, President of ScaleTrains, for their early leadership and support. We also recognize Stacey Walthers Naffah, President of Walthers Trains and the World’s Greatest Hobby, for her exceptional organizational skills, encouragement, and thoughtful input into this founding effort.
Gratitude is also due to Thomas W. Haedrich, Chairman Emeritus of Atlas Model Railroad Company, for drafting the Tariff Position Paper and overseeing the launch of the Coalition’s website.
Appreciation is extended to the many companies and individuals who offered their ideas, enthusiasm, and support throughout the formation process. We further acknowledge the Hobby Manufacturers Association, National Retail Hobby Stores Association, Model Railroad Association and, the World’s Greatest Hobby Board for their leadership and advocacy on behalf of the industry.
To all those—named and unnamed—whose passion for the toy and hobby industry remains steadfast: their commitment stands as a powerful assurance that, whatever challenges lie ahead, this industry will continue to adapt, collaborate, and thrive.
Synopsis
Tariff Position Paper Preface
2. Introduction
- Economic Impact
- Employment Impact
- Consumer Impact
4. Tariff Historical and Current Context
A. Reinstate and Expand Section 301 Exclusions
B. Establish Emergency Suspension Mechanism
C. Develop Transparent Exclusion Review Process
D. Align Trade Policy with Small Business Preservation
E. Preserve Consumer Access to Educational and Cultural Goods
F. Target Relief to Non-Sensitive Goods
G. Strengthen America’s Skilled Workforce
7. Conclusion
Footnotes
Synopsis
This document outlines how current U.S. trade policy—specifically the imposition of a maximum of 145% tariffs on Chinese imports—is endangering the American toy and hobby industry, a sector composed primarily of small businesses supporting over 600,000 U.S. jobs. Drawing from real-time industry data, the paper urges swift, targeted policy relief.
Scope & Structure
The full paper provides:
- Context for current trade policy
- Economic, employment, and consumer impact analysis
- Historical justification for past tariff exclusions
- Targeted, actionable policy recommendations
Crisis Overview
- In April 2025, tariffs on Chinese imports rose up to 245%; China imposed 125% retaliatory tariffs.
- The toy and hobby sector—largely U.S.-based in design, development, and assembly—is caught without distinction or relief.
- Production shutdowns, layoffs, and cost spikes now threaten a large part of the industry’s survival.
Key Impacts
Economic:
- Tariffs more than double the landed cost of goods.
- Small businesses (5–10% margins) face cash flow collapse.
- Inventory delays, canceled shipments, and pricing instability are mounting.
- Sales cycles are shrinking; innovation is slowing; federal and state tax revenue is declining.
Employment:
- Jobs in design, marketing, logistics, warehousing, and customer service are at risk.
- Thousands of community-rooted retailers face layoffs, reduced hours, or closure.
Consumer Access:
- Products used in education, therapy, and childhood development are becoming unaffordable.
- Tariffs disproportionately hurt lower-income families, veterans, fixed-income retirees, STEM (Science, technology, engineering and mathematics) educators, and underserved schools.5
- The gap in access to developmental tools is widening.
Historical Context
- From 2018–2020, USTR granted Section 301 tariff exclusions to toy and hobby products based on economic harm and lack of alternatives.
- Conditions warranting relief then—non-sensitive goods, domestic sourcing issues, educational use—remain or have worsened.
- The April 2025 escalation makes renewed exclusions critical and logical.
Policy Recommendations
A. Reinstate & Expand Exclusions
- Prioritize products used in education, family development, and therapy.
B. Emergency Suspension
- Temporarily lift tariffs on essential, non-sensitive hobby and toy categories.
C. Transparent Review Process
- Enable real-time business impact submissions and tracking.
D. Small Business Mitigation
- Tailor exemptions for firms with <500 employees.
E. Preserve Consumer Access
- Factor in affordability and educational equity in future tariff decisions.
F. Target Relief to Non-Sensitive Goods
- Avoid applying strategic tariffs to cultural and consumer items.
G. Rebuild Skilled Trades
- Invest in U.S.-based tooling and technical education to restore domestic capacity.
Programs and Activities
This outlines the Coalition’s multifaceted approach beyond policy advocacy, highlighting its commitment to education, industry coordination, and public engagement. Through STEM-aligned outreach, industry forums, legislative advocacy, membership expansion, consumer awareness efforts, and legal support, the Coalition works to elevate hobby products as vital tools for learning, creativity, and cultural enrichment. These evolving programs reinforce the broader mission to protect and promote the toy and hobby industry.
Conclusion & Call to Action
The toy and hobby industry—a vital source of learning, creativity, and community—is facing collapse. Tariffs originally intended as a trade and policy tool have grown so severe and far-reaching that they now threaten the very survival of the affected businesses, industries and sectors. Policy solutions are available and supported by precedent. Immediate action urged to:
- Reinstate exclusions
- Provide targeted relief
- Preserve American jobs and consumer access
This document presents a comprehensive analysis of how current U.S. trade and tariff policy impacts the American toy and hobby industry — a sector that has long supported small businesses, fostered educational development, and celebrated American traditions of innovation and entrepreneurship.
As of April 2025, toy and hobby products imported from China are subject to a 145% tariff under the updated Section 301 enforcement actions. While lower than the Administration’s 245% maximum applied to other sectors, this rate represents a historic high for the toy and hobby industry. It presents both challenges and an opportunity for strategic refinement to strengthen America’s small businesses, educational pipeline, and cultural foundations.
This Tariff Position Paper (TPP) is nonpartisan. Its purpose is to inform honestly and transparently, enabling consumers, business owners, and policymakers to better understand how a complex, evolving trade environment affects the toy and hobby sector today — and how thoughtful action can strengthen America’s economic and educational future.
This paper is organized into the following key sections:
- A brief overview of the current trade environment and immediate pressures on the toy and hobby sector.
- Context for the development of this paper and the diverse industries and communities it represents.
- Analysis of the economic, employment, consumer, and supply chain effects of tariff escalation.
- A historical and current review of tariff measures impacting the toy and hobby industry.
- Practical, achievable solutions that protect U.S. jobs, support American families and innovators, and uphold trade fairness.
- A summary call to action for industry participants, government officials, and the public.
Note on Evolving Policy Conditions:
The issues discussed within this Tariff Position Paper are subject to rapid change. Policies, procedures, and regulatory decisions affecting tariffs and trade are evolving on a daily basis, often with direct consequences for the toy and hobby industry. What is accurate as of this writing may shift in the near future. The Tariff Position Paper and its related website, www.hobbycoalition.org, will make every effort to remain current and to reflect major updates as they occur with our Daily Tariff Tracker, offering real-time updates and curated summaries specifically tailored to support informed action.
1. EXECUTIVE SUMMARY
At the start of April 2025, President Trump issued an executive order implementing a new round of tariffs, focused on imports from China, as part of a broader effort to address long-standing foreign trade imbalances. By mid-April, the Administration had imposed tariff rates exceeding 100% on a wide range of Chinese imports.¹ This includes categories that directly impact the toy and hobby industry.
In addition to Section 301 tariffs, the toy and hobby industry now faces additional tariffs imposed under the International Emergency Economic Powers Act (IEEPA). These IEEPA-based tariffs include measures linked to fentanyl-related enforcement and potential reciprocal tariff actions. The cumulative effect of Section 301 and IEEPA tariffs has created unprecendented challenges for small businesses across the sector, compounding pressures on pricing, inventory planning and consumer access.
China retaliated by raising its tariffs on U.S. imports to 125%, further exacerbating global trade tensions. In the meantime, the Trump administration announced a temporary pause on reciprocal tariffs affecting most trading partners, with the notable exception of China. However, emergency-based tariffs tied to national security and narcotics enforcement—including those enacted under the IEEPA—remain in force, applying to a variety of U.S. imports.
The toy and hobby industry — a sector rooted in small businesses, family traditions, hands-on learning, and future workforce development — faces unique pressures under the current environment. What was once a manageable policy concern has now evolved into an immediate challenge with far-reaching consequences for American families, community businesses, and the cultivation of future innovators.
We fully support the Administration’s broader goals of restoring trade fairness, rebuilding American manufacturing capacity, and protecting national security. Consistent with these objectives, we respectfully urge the Administration to implement strategic refinements to tariff policy — ensuring that industries vital to America’s educational foundation, small business economy, and cultural heritage are preserved and strengthened.
Toy and hobby products have historically qualified for targeted relief under Section 301 exclusion processes, based on the modest economic footprint of the sector and its outsized contribution to American social and educational development. Today, that rationale is stronger than ever. Strategic action to protect this sector will help advance domestic growth goals, support early stage engineering and problem solving kits, and preserve entrepreneurial opportunities across hundreds of American communities.
This document presents economic impact analysis, historical context, and policy recommendations centered on strengthening American families, small businesses, and future innovators through smart trade refinement. We invite policymakers and leaders to seize this opportunity — refining tariff policy to both defend America’s global competitiveness and honor the traditions that have long built its success.
2. INTRODUCTION
For more than a century, the U.S. toy and hobby industry has maintained a vibrant and meaningful presence in American life — designing, developing, and distributing products that inspire creativity, learning, and connection across generations. From educational toys and model trains to collectibles, science-based kits, and much more, this industry supports hundreds of thousands of American jobs² and plays a vital role in family life, small business vitality, and the development of STEM skills critical to America’s future workforce.
Today, this legacy faces new and significant challenges that may not yet be fully understood by policymakers or the public. Yet with thoughtful action, these challenges can be met — and the industry’s contribution to American economic strength, educational excellence, and community tradition can be preserved and expanded for future generations.
Many members of the toy and hobby sector are based here in the United States — designing, engineering, assembling, and manufacturing domestically. These businesses and individuals form a vital part of the industry’s ecosystem and stand as compatible allies with the Administration’s goals of restoring American industry and balancing international trade. Acknowledging their contributions reinforces that our position represents the full spectrum of stakeholders — both domestic and globally integrated — all committed to strengthening America’s future.
The recent escalation of trade actions between the United States and China — culminating in triple digit tariffs on many toy and hobby products — has created cost pressures and operational challenges for this sector. China’s 125% retaliatory tariffs further compound the complexity. These measures, while aimed at broader trade goals, place disproportionate strain on small and mid-sized businesses, family-owned retailers, and longstanding U.S. brands who lack the pricing flexibility or sourcing alternatives of larger sectors.
Critical supply chains are being disrupted. Production timelines are being compressed. Consumer prices are rising. Small businesses — the heart of many American communities — are facing mounting pressure.
This Tariff Position Paper offers a comprehensive overview of the current tariff environment, grounded economic impact analysis, and targeted, strategic policy recommendations. Our purpose is to present solutions that both support the Administration’s broader economic goals and protect an industry that holds not only economic significance, but deep cultural and educational importance for the future of the nation.
With awareness and strategic action, we can preserve a vital American industry, strengthen communities, foster innovation, and build a stronger future for generations to come.
3. IMPACT ANALYSIS
The sharp escalation of tariffs on toy and hobby products imported from Asia — particularly China — has created serious challenges for the U.S. toy and hobby sector. As of mid-April 2025 U.S. tariffs in this sector of Chinese goods reached as high as 145%, triggering cost pressures that disproportionately impact small and mid-sized American businesses4.
Yet these challenges also present an opportunity for strategic action. By refining tariff policy to preserve access to educational, family-centered, and innovation-driven industries like toys and hobbies, the Administration can strengthen small business resilience, support America’s future workforce development, and uphold cherished American traditions of learning, craftsmanship, and community connection.
The toy and hobby sector — operating on slim margins and deeply rooted in local communities — now faces compounding pressures: increased landed costs, strained supply chains, disrupted seasonal planning, and shrinking consumer access. Without strategic refinement, these forces could erode an industry that has served for generations as a foundation for American creativity, educational advancement, and small business entrepreneurship.
The following analysis explores the economic, employment, and consumer impacts of the current tariff environment — and presents a compelling case for why smart, targeted refinements to trade policy will strengthen America’s economy, preserve small businesses, and sustain the family and community traditions that have long defined our national character.
Economic Impact
Tariffs imposed under Section 301 enforcement actions have sharply escalated costs across the U.S. toy and hobby industry, placing acute pressure on small and mid-sized businesses that form the foundation of American innovation, family entrepreneurship, and community economic vitality.
A 145% tariff increase does not merely raise sticker prices — it ripples across every stage of the supply chain. Manufacturers are grappling with unprecedented landed costs, forcing the reallocation of critical working capital simply to secure inventory3. Financing, insurance, warehousing, and freight costs have all risen sharply. To hedge against future uncertainty, many companies now carry excess inventory, tying up operational funds and limiting investment in new development.
Sales cycles are also under stress. Pricing volatility and supply disruptions have eroded distributor confidence, constrained consumer spending, and compressed planning horizons — a significant challenge in a sector where seasonal demand is critical to business survival.
Without strategic refinement, these dynamics threaten not just businesses, but America’s broader innovation ecosystem. Reduced cash flow restricts tooling, product development, and creative advancement — areas where U.S. firms have historically excelled. Profit margins have thinned to unsustainable levels, forcing even long-established companies to confront hard decisions about staffing, investment, and future growth.
The impact extends beyond private enterprise. Diminished corporate and personal income tax revenues from small businesses, layoffs, and shuttered operations will strain federal, state, and local budgets. Protecting the toy and hobby sector through targeted tariff refinement is therefore not merely an industry issue — it is a vital step toward preserving American entrepreneurialism, innovation, and community-based economic health.
Employment Impact
The U.S. toy and hobby industry supports an estimated 600,000 direct jobs2 and sustains over 10,000 independent retail storefronts3 across the country — from family-owned model train shops to educational toy stores in local communities. These small businesses have long served as engines of opportunity, bringing creative and technical employment opportunities to both rural towns and urban centers alike.
Tariff escalation at current levels puts this employment base at risk. With margins already thin, many businesses are struggling to absorb the sudden doubling of landed costs. Without smart strategic adjustments, they will face difficult choices:
- Reducing staff and hours
- Canceling product development cycles
- Postponing expansion or exiting the market entirely
The ripple effect extends far beyond storefronts. American jobs in design, research and development, marketing, warehousing, sales, logistics, customer service, and administration — many based in the United States even when production occurs abroad — are also imperiled. These are skilled, good-paying jobs that foster creativity, innovation, and small business resilience.
Without action, we risk losing not only retail presence but the broader American infrastructure that nurtures innovation, technical expertise, and entrepreneurship. Preserving the toy and hobby industry through targeted trade policy refinement is an investment in America’s workers — workers who design, inspire, educate, and build.
Consumer Impact
The toy and hobby industry serves a uniquely diverse and loyal consumer base — encompassing families, educators, STEM learners, veterans, first responders, and hobbyists of all ages and backgrounds. The sharp escalation of tariffs now threatens to erode affordable access to products that are vital tools for education, therapy, creative expression, and family connection.
Toys, model kits, educational games, and hobby materials are not mere pastimes. They cultivate technical thinking, foster creativity, provide therapeutic support, enhance development skills of youth, and enrich learning experiences for millions of American households.11 As prices rise and availability shrinks, the burden falls hardest on working families, underserved communities, and schools that depend on affordable resources for hands on science and engineering education and developmental learning.
The impact is particularly acute for:
- Lower-income families and school districts seeking accessible, affordable learning tools.
- Veterans and first responders who rely on therapeutic hobbies such as model building and scale modeling.
- Model railroad clubs that provide community outreach and engagement as part of their activities.10
- Parents and caregivers striving to provide safe, developmentally supportive products that nurture focus, creativity, and hands-on problem solving.
Industry data shows the scale of this impact:
- 65 million American households purchase toys each year.5
- Over 20 million hobbyists actively participate in model building, remote control, painting, and tabletop gaming.
- Approximately 7 million students are engaged in STEM programs that incorporate hobby-based learning tools.
As tariff-driven costs climb, access to these vital educational and enrichment tools diminishes, creating a widening equity gap. Strategic tariff refinement will protect the ability of American families, students, educators, and veterans to access the resources that nurture creativity, learning, recovery, and community strength — investments that ultimately benefit the nation’s long-term competitiveness and unity.
4. Tariff Historical and Current Context
Between July 2018 and early 2020, during the first Trump Administration, the U.S. Trade Representative (USTR) implemented a series of Section 301 tariffs targeting Chinese imports. These tariffs, rolled out in phases, ultimately affected over $350 billion in goods—including a broad range of toy and hobby products.6 Lists 3 and 4A specifically captured many specialty items such as model railroad equipment, which depend on long-established, high-skill manufacturing infrastructure concentrated in China.
In late 2019, recognizing the unique challenges faced by certain sectors, the USTR granted temporary, product-specific exclusions.7 These exclusions were based on clear criteria: demonstrable economic harm, lack of alternative sourcing, minimal national security concerns, and the products’ educational and developmental significance. Many exclusions were extended beyond their original 12-month terms, indicating the Administration’s acknowledgment of these products’ role in education, therapy, and creative development.
Why Continuation is Logical and Necessary
The conditions that justified those original exclusions not only remain but have intensified. Persistent inflation,8 volatile shipping costs,9 and global supply chain fragility10 have heightened the stakes. Renewing and refining exclusions now is both a policy continuation and a strategic necessity.
Key facts remain unchanged:
- These products pose no national security threat and are original, non-sensitive designs created by U.S. companies for educational, recreational, and therapeutic use.
- Domestic alternatives are limited, often cost-prohibitive, and ill-suited to the specialized, small-volume nature of hobby manufacturing.
- The industry serves as a critical gateway to resources aligned with future ready curricula learning, hands-on education, and intergenerational creativity—especially through after-school programs, museums, veterans’ groups, and retirement communities.11
- The sector is composed largely of small businesses with narrow margins and limited ability to absorb abrupt cost surges.12
Extending exclusions does not undermine strong trade enforcement. Rather, it refines it—anchored in precedent, consistent with broader economic goals, and focused on safeguarding industries that contribute to America’s cultural and educational fabric.
By sustaining these exclusions, the Administration can:
- Reinforce the STEM education pipeline and hands-on learning opportunities;
- Preserve small business viability in the face of global uncertainty;
- Protect community-based traditions with deep historical and educational value.
In sum, renewing these exemptions supports smart, precedent-based trade policy. It does not dilute the nation’s trade posture—it sharpens it, ensuring that enforcement actions are both economically targeted and socially responsible.
Model railroading and similar hobbies, while distinct in audience and application, have long been classified under the same tariff codes as traditional toys. Given the regulatory hurdles and time required for reclassification, the most effective strategy at this time is to remain within the toy category (HTSUS) while clearly distinguishing the hobby segment in public, policy, and legal communications.
This approach enables continued collaboration with the broader toy industry—whose advocacy infrastructure is well established—while emphasizing the educational, historical, and adult-participated nature of hobby products. It allows for swift engagement on policy solutions, including reinstatement of Section 301 exclusions, without weakening the shared interests of the toy and hobby sectors.
5. Policy Recommendations
The current trade environment — marked by a 145% tariff on imports from China and a 125% retaliatory tariff on U.S. goods — presents significant challenges for the American toy and hobby industry. Small businesses, family-owned retailers, educational suppliers, and skilled creative workers are confronting rising costs, strained supply chains, and shrinking consumer access.
Yet these challenges also offer a strategic opportunity. Through targeted refinements to tariff policy, the Administration can preserve vital American industries, protect jobs, strengthen educational development, and uphold the traditions of innovation and family connection that have long defined the nation’s success.
While reclassification of misapplied tariff codes under the Harmonized Tariff Schedule (HTSUS) may be appropriate in certain cases—particularly where hobby products have been swept into categories meant for chemical or national security goods—the Hobby Industry Coalition recognizes that this is a complex and time-consuming process. Therefore, the primary focus of our policy recommendations is the establishment of practical, exclusion- and review-based mechanisms. These tools have precedent under Section 301 and can be adapted to IEEPA and fentanyl-related tariffs. They offer a more immediate, targeted path for relief, allowing the administration to correct unintended consequences without weakening the broader enforcement framework.
The following recommendations-including the strategic use of tariff exclusions where appropriate-are presented as practical tools to strengthen America's small businesses, protect educational access, and uphold the nation's long tradition of innovation and community leadership.
We respectfully recommend the following actions to advance these shared goals:
A. Reinstate and Expand Section 301 Exclusions for Educational and Hobby Goods
- Extension of Section 301 Tariff Exclusions: Immediate continuation of existing exclusions critical to the toy and hobby industry to mitigate the impact of heightened tariffs on manufacturers, retailers and consumers.
- Creation of IEEPA Tariff Exclusion Process: Introduction of a formal exclusion process for tariffs imposed under IEEPA authority and any future emergency-based tariffs applicable to the toy and hobby industry.
- Create a fast-track reinstatement mechanism for products whose exclusion status expired without an opportunity for reapplication.
B. Establish an Emergency Suspension Mechanism for Critical Consumer Goods
- Implement a temporary but renewable suspension of Section 301 tariffs for non-sensitive, consumer-focused goods essential to education, therapy, and American family life — such as model trains, math and technology learning tools, role-playing games, puzzles, and creative activity sets.
C. Develop a Transparent, Fair Exclusions Review Process
- Establish a rolling review mechanism with clear deadlines, public tracking, and stakeholder engagement.
- Allow manufacturers, retailers, and trade associations to document economic hardships (e.g., layoffs, canceled shipments, market contraction).
- Provide conditional relief for companies actively pursuing sourcing diversification but needing transitional support.
D. Align Trade Policy with Small Business Preservation Growth
- Direct USTR and the Department of Commerce to collaborate with the SBA (Small Business Administration) in evaluating the disproportionate impact of tariffs on small enterprises.
- Use these findings to guide exemption and mitigation strategies specifically targeted at companies with fewer than 500 employees in creative and educational sectors.
E. Preserve Consumer Access to Educational and Cultural Goods
- Recognize the unique role of toys and hobbies as tools for learning, therapy, creative development, and family connection — not merely commodities.
- Incorporate consumer impact analysis into all future tariff decisions, ensuring that American families and schools retain access to critical developmental and educational resources.
F. Target Relief to Non-Sensitive Goods Without Compromising Security
- Distinguish between different categories of tariffs (Section 301, reciprocal tariffs, fentanyl-related actions).
- Focus relief on non-sensitive, consumer-focused goods where trade enforcement goals are not directly advanced by broad tariff application.
G. Strengthen America's Future Workforce by Investing in Skilled Trades
Decades of decline in tool and die making have weakened domestic manufacturing capacity.8 We urge federal and state support to:
- Expand funding for technical education and skilled trade programs critical to manufacturing, tooling, and precision design.
- Incentivize industry partnerships between manufacturers and training institutes.
- Prioritize workforce development initiatives that rebuild America’s capacity to manufacture specialty goods domestically over time.
These recommended actions offer a practical, precedent-based, and forward-looking approach to strengthening America’s economy, protecting small businesses, preserving educational access, and reinforcing the spirit of innovation that has always propelled the nation forward.
The toy and hobby sector stands ready to support the Administration’s broader goals — revitalizing domestic industry, securing America’s future workforce, and sustaining the family-centered traditions that define our strength as a nation.
Strategic action today will not only address current trade challenges but also build a stronger, more resilient America for generations to come.
6: Programs and Activities
While policy recommendations are central to the Coalition’s mission, our work is also grounded in public education, industry outreach, and cultural engagement. These programs and activities are either underway or in development and will continue to evolve as the Coalition grows:
- Educational Outreach: Promoting the educational value of model railroading and related hobbies through partnerships with STEM programs, museums, and youth organizations. The Coalition supports efforts that demonstrate how hobby participation cultivates skills in engineering, design, history, and critical thinking.
- Industry Engagement: Regular forums and briefings with manufacturers, retailers, and importers to assess tariff impacts and coordinate messaging across product categories, especially for small and mid-sized businesses.
- Legislative Advocacy: Targeted meetings with Members of Congress and committee staff to advocate for Section 301 exclusions, fair classification under HTSUS, and recognition of hobby products as educational and cultural assets.
- Coalition Expansion: Continued outreach to recruit new members across the hobby and toy sectors, trade groups, and local organizations that reflect the breadth of our industry and the diversity of our customers.
- Public Awareness Campaigns: Creation of consumer-facing resources—including online materials, social media content, and print collateral—to raise awareness of how tariffs negatively impact creativity, learning, and community engagement.
- Legal & Regulatory Guidance: Collaboration with customs experts and legal advisors to clarify classifications, contest harmful tariffs, and assist members with exclusion requests and documentation.
These initiatives reflect our belief that hobby products are more than recreational-they are tools for learning, connection, and innovation. As the Coalition expands, this section will grow to highlight additional partnerships, campaigns, and successes.
7. Conclusion and Summary
The toy and hobby industry has long held a special and irreplaceable place in American life — offering tools of imagination, education, craftsmanship, and connection to millions of families, children, educators, veterans, and hobbyists across the nation. It is a sector built on American ingenuity, small business entrepreneurship, and multi-generational passion — the same spirit that once drove the building of railroads across the continent9, connecting communities and forging opportunity.
Today, that spirit stands at a critical crossroads.
Recent dual tariffs imposed by both the U.S. and China have created severe pressures on U.S. manufacturers, retailers, importers and exporters. These challenges, if left unaddressed, threaten to permanently erode vital industry-in particular toys and hobbies that nurture creativity, fosters science, technology, engineering and math education, provides therapeutic support and strengthens family bonds.
Generational businesses — built through hard work, craftsmanship, and deep-rooted family commitment — now face difficult decisions about their futures. Yet this moment does not have to mark decline. It can instead mark a renewal.
This Tariff Position Paper has presented a clear roadmap:
- Practical solutions grounded in precedent
- Strategic refinements that strengthen small businesses, support education, preserve cultural traditions, and reinforce America’s future competitiveness
Policy action today offers an opportunity — not merely to prevent harm, but to champion America’s entrepreneurial spirit, protect future innovators, and sustain the traditions that have always made the nation strong.
The Hobby Industry Coalition is not calling for the dismantling of American trade enforcement. We are calling for its refinement. By reinstating proven exclusion tools, implementing temporary relief mechanisms, and applying rational review processes to tariffs imposed under Section 301, IEEPA, and fentanyl-related authorities, policymakers can provide targeted relief to an industry that contributes to education, small business vitality, and national culture. These recommendations are achievable, precedent-based, and respectful of national interests. They offer an immediate path to correct overreach while preserving the strength of American trade policy. In this moment of challenge, refinement—not retreat—is the responsible solution.
We respectfully call on all stakeholders to rise to this moment:
- Manufacturers, retailers, and distributors: Communicate clearly and urgently with suppliers, customers, and lawmakers about the stakes involved.
- Industry media and associations: Unite messaging, update economic models, and tell the story of America’s creative and educational industries.
- Congressional leaders: Engage, investigate, and advocate for practical, targeted tariff solutions.
- The Administration and USTR: Implement strategic refinements that protect America’s families, businesses, and educational foundations — while advancing the broader goals of economic resilience and domestic revitalization.
HIC's long-term vision includes not only policy advocacy but also public education, coalition building across disciplines, and the development of tools and resources that promote the hobby industry's role in STEM education, historical preservation, and life long learning. These parallel efforts are essential to the Coalition's mission and are undertaken in cooperation with like minded charitable and educational organizations.
Together, we can protect not just products — but a vibrant American tradition rooted in learning, imagination, innovation, and small business ingenuity. With swift, coordinated, and visionary action, this moment can become not a point of crisis, but a landmark of American renewal. It can stand alongside the great achievements of American history — railroads that connected a young nation, family businesses that built strong communities, and industries that nurtured the skills and dreams of generations.
Footnotes:
¹ Executive Order [Number Pending], April 2025, establishing new tariffs on Chinese imports; White House Office of Trade and Manufacturing Policy, April 2025.
² National Retail Federation; U.S. Census Bureau Annual Retail Trade Survey (ARTS) 2024, indicating approximately 600,000 U.S. jobs supported by the toy and hobby sector.
³ Toy Association Industry Data Report, 2024, documenting over 10,000 independent toy and hobby storefronts across the United States.
⁴ Peterson Institute for International Economics, “Impact of Tariffs on U.S. Import Costs and Supply Chains,” 2024, outlining the average 2x–2.5x landed cost multiplier effect under tariffs exceeding 100%.
⁵ Hobby Manufacturers Association, “State of the Hobby Industry Report,” 2024, estimating:
⁶ United States Trade Representative (USTR), Lists 3 and 4A, Section 301 Tariff Actions on Chinese Imports, 2018–2020.
⁷ USTR Federal Register Notices, “Section 301 Product Exclusion Process,” November 2019–December 2020, detailing exclusions granted for educational and hobby products.
⁸ U.S. Department of Labor, Bureau of Labor Statistics, “Employment and Output in Skilled Trades Occupations,” 2024, highlighting the multi-decade decline in domestic skilled trades such as tooling and machining.
⁹ Congressional Research Service (CRS), “The Pacific Railway Act and the Transformation of America’s Infrastructure,” CRS Historical Brief, updated 2024.
¹⁰ National Model Railroad Association (NMRA) estimates approximately 1,000 formal model railroad clubs exist nationwide, along with thousands of informal groups, fostering intergenerational learning and STEM education engagement.
¹¹ American Academy of Pediatrics, “The Power of Play: A Pediatric Role in Enhancing Development in Young Children,” Pediatrics Journal, 2018; and National Association for the Education of Young Children (NAEYC), documenting the critical role of toys and play in supporting children’s physical coordination, cognitive development, emotional resilience, and social skills.
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.