The Globe and Mail reports in its Friday edition that American parents are expected to particularly feel the effects of an escalating trade war between the United States and China, with the price of toys likely to skyrocket as a result of stringent new tariffs on Chinese imports. The Globe's James Griffiths writes that U.S. President Donald Trump this week introduced 10-per-cent across-the-board tariffs on all Chinese imports, doubling the extra duty imposed on such goods since he took office in January to 20 per cent. Beijing immediately responded in kind, slapping new tariffs on U.S. agricultural and food products. Before coming to power for a second time, Mr. Trump had threatened China with 60-per-cent tariffs, and analysts expect the trade war to continue to escalate in the weeks and months to come. The U.S. toy industry is particularly vulnerable, as nearly 80 per cent of toys sold in the U.S. are made in China, said Greg Ahearn at the Toy Association. He described the 20-per-cent tariffs on Chinese imports as "crippling." The Globe reported last month that Spin Master is reviewing its supply chain options and considering pricing changes. Sales may also be hindered by consumers being more cautious with spending.
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