Plain English with Derek Thompson A Toy Manufacturer Explains How Trump’s Tariffs Could Crush His Industry
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Apr 17, 2025 
In this engaging conversation, Molson Hart, CEO of Viahart—a toy manufacturing company producing items in China, Indonesia, and Vietnam—sheds light on the adverse effects of Trump’s tariffs on his industry. He argues that while he supports the administration's manufacturing goals, the tariffs could devastate businesses like his. Molson discusses the ethical dilemmas companies face, the challenges of shifting supply chains, and the uncertainty entrepreneurs navigate. He provides a unique perspective on the complexities of American manufacturing and trade policies.
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Shifting Manufacturing to Southeast Asia
- Molson Hart and his company are actively trying to reroute manufacturing from China to Vietnam and Indonesia to reduce tariff costs.
- This supply chain shift is a direct response to uncertain and escalating tariffs from China.
Tariffs' Unpredictable Effects on Prices
- Tariffs can cause either inflation or deflation in the toy industry, depending on company responses.
- Some companies might reduce prices to liquidate inventory, while others pass costs to consumers, causing higher prices.
Incentives to Cheat Tariffs
- The 145% tariffs incentivize companies to cheat by undervaluing invoices or mislabeling origin countries.
- U.S. companies face greater legal risk than foreign firms, which may encourage cheating by foreign entities.