Big Take India Wanted to Become The World’s Toymaker. Then Tariffs Happened
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Dec 9, 2025 The U.S.-China tariff war has pushed American toy companies to seek alternatives in India, but shifting tariffs complicate the situation. Inside two toy factories, the struggle to meet orders amid rising tariffs creates a hard-hit landscape. Family-run businesses face unpredictability as costs soar, with many firms caught with unsold inventory. India aims to become a toy manufacturing hub, yet skilled labor challenges and the allure of Vietnam complicate its ambitions. Can India overcome these hurdles to claim its spot in the global toy market?
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Rushed Shipment Cost $50,000
- Sun Lord rushed 15,000 plush yoga balls to meet a U.S. order before tariffs rose.
- A six-hour delay caused a $50,000 cost when the shipment hit a 50% tariff instead of 25%.
Family Firms Hit By Policy Whiplash
- Sun Lord is a three-generation family business that pivoted from textiles to toys.
- The company cut growth forecasts from 15% to about 3% after U.S. tariff changes stalled orders.
Tariffs Undercut India’s Competitiveness
- India's high tariffs make it less competitive than China and Vietnam for U.S. buyers.
- Factories face suspended orders and millions in unsold inventory due to tariff-driven cancellations.