US tariffs on China, Thailand may open door for India’s toy exports

Subscribe to enjoy similar stories. NEW DELHI : A global shake-up in the toy trade is underway, and India may have just been dealt an unexpected advantage. Washington has slapped a 26% reciprocal tariff on Indian goods, citing what it claims is an average 52% tariff on US imports into India.

While this presents a fresh challenge for Indian exporters, it comes alongside a much steeper blow to China and Thailand, two of the world’s largest toy manufacturers. Read this | Trump’s tariff strike: India hit with 26% duty as trade war escalates As the world’s largest toy importer, the US accounts for over 30% of global demand, with China alone supplying nearly two-thirds of it. But the latest tariff realignment threatens to weaken China’s dominance, creating an opening for emerging players like India, according to trade analysts.

While challenges remain, industry leaders see this as a chance to boost exports and strengthen India’s position in the global toy supply chain. Under the US tariff plan, China—the primary target—now faces a 34% reciprocal tariff, on top of an earlier 20% duty, bringing the total to 54%. Meanwhile, Thailand will face a 36% tariff.

India’s toy market, valued at $1.7 billion in 2023, is projected to reach $4.4 billion by 2032, growing at a CAGR of 10.9%, according to the Indian Brand Equity Foundation (IBEF). In FY24, India's toy exports totaled $152.34 million, slightly down from $153.89 million the previous year, according to commerce ministry data. Despite this, the US remained a key market, accounting for $250 million of India’s $648 million in toy, game, and sports exports in 2023.