2025 Tariff Impact on Plush Organs
Nobody asked, but YES, we are affected by the 2025 tariffs! Our plush, pins, keychains and stickers are made in China, and are therefore affected by the 145% tariffs slapped on all imports, even if they are made by a company in the USA. I'm not gonna sugarcoat this situation -- it's not great. In fact, the last batch of plushies could be the last ones we ever make.
Our shipment left April 8, and our goods were therefore subject to 30% tariff instead of 145%. But since we spent so much $ on just the 305% added tariff, we actually can't buy any more inventory at the moment. So we will be out of some stuff for a while unless the tariffs are reversed. We will spread the cost of the tariff across all the inventory we have in stock so that we only have to raise prices a little bit. But if we want to order more plush guts in time for the holidays, we just won't be able to stomach paying 2.5x more. We do make socks, magnet and buttons in the USA, so that's good! Maybe we will become a sock and button company.
Common questions about tariffs:
Q: Don't Tariffs Punish China?
A: Any US company that makes stuff in China will be paying those tariffs when the goods enter the United Staes. Most companies pass extra expenses like tariffs onto their customers: that's YOU.
Q: Why can't you manufacture in the United States?
A: Toy manufacturing has been located overseas since at least the 1980s. Making plush toys in the USA will lead to an $80 retail plushie. Even with tariffs, it's still cheaper to make toys in China. Either way, prices will go up. We find the best price to make our stuff so you don't have to pay big bucks on our stuff.
Q: Will I still be able to buy plush organs?
A: We have a decent amount of inventory right now, but we will definitely be out of a few items for a while very soon and into the holidays as we absorb this added tariff cost and search for new suppliers in other countries. We will of course look into US manufacturing, as we do every year -- most "USA Made" plushies import plush skins made in China and stuff here so they can claim "Made in the USA." Hopefully more reasonably-priced manufacturing options will spring up soon.
Q: What about pins and keychains and pins?
A: Keychains are tariffed at 170% (Trump slapped a 25% tariff on keychains that remained through the Biden administration). Aluminum is tariffed an extra 10%, so those are 155%, enamel pins will now cost $23 instead of $6.99. I reached out to a US manufacturer of pins, and they quoted me a price that would make our pins $32 retail. UGHHH. I'm still running the numbers on stickers. Prices will go up dramatically for EVERYTHING at all the stores you know and love. It's gonna suck buttholes, unless the tariffs are reversed.
Q: Are you going to go out of business?
A: I don't know. Our first move will be to find manufacturing in another country. If we can't bring our prices low enough, we will switch to a direct to consumer model, as we won't be able to accommodate wholesale to stores. This makes me so sad, as we have developed relationships with stores, science museum gift shops and student bookstores over the years. They are all part of the I Heart Guts Family.
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