Hobby Industry Coalition Tariff Position Paper — August 2025

The Voice of America’s Hobby Industry™

Note to Readers:

This document updates and condenses the Hobby Industry Coalition’s May 2025 Tariff Position Paper to reflect recent developments, including the U.S.–China 90-day tariff pause set to expire November 10, 2025. The original May paper remains available as a detailed background resource, while this August brief presents the Coalition’s current policy position in a streamlined format for policymakers and stakeholders. 

1. Executive Summary

In 2025, the Administration enacted a new round of tariffs on imports from China, with rates reaching 145% on toy and hobby products under Section 301. These actions, combined with emergency-based tariffs under the International Emergency Economic Powers Act (IEEPA), have created unprecedented challenges for an industry rooted in small businesses, family traditions, and hands-on learning. China has retaliated with tariffs of up to 125% on U.S. exports, escalating global trade pressures. While the Administration has announced a temporary 90-day tariff pause on some reciprocal measures, the heightened rates on Chinese imports remain in place, directly impacting the toy and hobby sector.

This industry is modest in scale yet vital in function: supporting over 600,000 jobs, 10,000 independent storefronts, and millions of American families, students, and veterans who rely on hobby products for education, therapy, and community engagement. Historically, toy and hobby goods have qualified for targeted tariff relief based on their small economic footprint and large social contribution. That rationale is stronger today than ever.

The Coalition urges the Administration to refine tariff policy through established and precedent-based tools, ensuring trade enforcement remains strong while preserving sectors critical to education, small business vitality, and America’s cultural heritage.

2. Industry Impact

Tariff escalation at current levels has sharply increased landed costs, compressed seasonal planning, and strained supply chains. Small and mid-sized businesses — the backbone of the sector — face the risk of staff reductions, canceled product development, and potential closures.

• Economic: Rising tariffs erode margins and tie up working capital, reducing investment in product design and tooling.
• Employment: More than 600,000 U.S. jobs across design, logistics, retail, and creative services are at risk.
• Consumers: Families, schools, and veterans’ groups face shrinking access to affordable, educational, and therapeutic products.

This impact is magnified in sub-sectors such as model railroading, R/C vehicles, and plastic model building, which lack alternative sourcing options and operate at small scale but high educational value.

3. Policy Context

From the first Section 301 tariffs (2018–2020) through today, toy and hobby products have been repeatedly recognized for targeted exclusions due to their educational and cultural role. The conditions justifying those exclusions remain unchanged — and have intensified under inflation, shipping volatility, and fragile supply chains.

Continuing relief is logical and necessary:

1. Products pose no national security risks.
2. Domestic alternatives are limited or impractical.
3. Hobby goods directly support STEM, therapy, and intergenerational learning.
4. The sector is composed largely of small businesses with narrow margins.

4. Policy Recommendations

We respectfully recommend the Administration implement targeted refinements to protect small businesses and preserve consumer access, while maintaining robust trade enforcement:

A. Reinstate and Expand Exclusions

• Renew Section 301 exclusions for toy and hobby products.
• Establish a formal exclusion process for IEEPA-based tariffs.
• Create a fast-track reinstatement for expired exclusions.

B. Emergency Suspension Mechanism

• Provide renewable suspensions for non-sensitive, consumer-focused goods essential to education and family life.

C. Transparent Review Process

• Establish rolling reviews with public tracking and stakeholder engagement.
• Allow companies to document economic harm (layoffs, shipment cancellations).

D. Small Business Alignment

• Direct USTR, Commerce, and SBA to coordinate relief tailored to companies with fewer than 500 employees in creative/educational sectors.

E. Consumer Access Safeguards

• Recognize toy and hobby products as tools for education, therapy, and community engagement in all tariff decisions.

F. Target Relief Without Undermining Security

• Distinguish consumer goods from sensitive categories, ensuring enforcement remains targeted and effective.

5. Conclusion

The toy and hobby sector is not asking for weakened trade enforcement — only for refinement. At 145% tariffs, the current approach risks eroding small businesses, limiting educational resources, and damaging a sector that nurtures America’s future innovators.

By restoring proven exclusion tools, implementing emergency relief mechanisms, and aligning tariff decisions with small business and consumer realities, the Administration can protect a vital American industry while advancing broader trade and manufacturing goals.

The Hobby Industry Coalition stands ready to support this effort with data, testimony, and industry-wide engagement. Working together, we can safeguard not just products, but the creativity, skills, and traditions that strengthen America’s future.

(Click here for the May 2025 Tariff Position Paper)