Well, the week ended with a big bang. Early Friday, President Trump announced on social media that the latest tariff talks with the PRC had broken down for various reasons and that he would be taking punitive action against China for failing to live up to their end of the bargain. According to his post, Trump would impose a further 100% tariff increase on China, purportedly to take effect on November 1st or perhaps sooner if he decides to play hard ball with the Chinese delegation. Needless to say, Trump was supposed to meet with President Xi of China in South Korea later this month, to discuss matters and hopefully bring a resolution to this trade war. In a separate matter, the US Supreme Court isn’t set to take up the matter of tariffs until November, which is far too late for most manufacturers, distributors, and retailers to take action for the upcoming holiday season.

There was a number of Chinese-made products expected to arrive in early November, which are obviously now affected by the recent rash decision by the Trump Administration to increase the tariffs to unassailable levels. Right now, we are in a quandary as to what to do, and waiting to hear back from our suppliers to see if further adjustments are warranted regarding both dates of availability and pricing. Its entirely possibly that these goods won’t even make it to our shores for the holiday season and could be placed on indefinite hiatus until something is worked out between the world’s two largest economies. Obviously, we can no longer guarantee pricing or release dates for said items and its entirely possible that these products will never materialize now or ever.

As the holidays approach, we strongly recommend that you place your orders for only those items marked as already being in-stock rather than pin your hopes on products slated for arrival in either November or December. To reiterate, the manufacturers that are affected by these increased tariffs include Air Force 1, Calibre Wings, Corgi, Dragon, Forces of Valor (Waltersons), Legion and Panzerkampf. Many of the remaining manufacturers we deal with are still affected by the original tariffs, so there is no guarantee that they are free-and-clear of these added tariffs either, particularly if the Trump Administration feels the need to impose across-the-board changes to their “Liberation Day” plans. We certainly don’t want to disappoint, but hope you understand that these circumstances are completely out-of-our-control.

In response to his threats, China, on Sunday, has vowed countermeasures against Washington if US President Donald Trump makes good on his threat to impose new 100% tariffs on Chinese imports.

Trump’s latest threat came after China unleashed a raft of export restrictions on rare earth minerals last week. The escalating tensions threaten to derail months of progress in trade talks.

“Resorting to threats of high tariffs is not the right way to engage with China,” a Ministry of Commerce spokesperson said Sunday, in Beijing’s first comments on the threat.

“If the US persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the spokesperson added. “Our position on a tariff war remains consistent – we do not want one, but we are not afraid of one.”

From a business standpoint, we are entering the holiday season with the leanest inventory level we’ve ever seen in our twenty five years of existence. While our balance sheet is pristine and our credit rating has never been higher, we’ve had to raise the prices on many newly-received items in compliance with the MAP policies our distributors have had to implement and enforce due to the Trump tariffs. Additionally, many of the items we had expected to take possession of in the fourth quarter have either been delayed, cancelled or pushed back indefinitely, making it increasingly difficult to replace out-of-stock merchandise with fresh inventory. Consider too that we pared back our purchases largely because we weren’t sure what effect the Trump tariffs would have on end-user demands. Lastly, many customers are keenly aware of these collective issues and have shopped early for the holidays, recognizing that many items they had hoped to purchase won’t be available or may be negatively price-adjusted to take into account these escalating tariffs. All of this has accelerated sales, making it harder to keep product in-stock while the eye wall of the holiday shopping season approaches. Once again, food for thought if you plan on ordering something this holiday season that may or may not arrive.

There seems to be no shortage of issues popping up of late which have direct effects on the sales of product coming into the United States. Recently, the Trump administration ended the De minimis Tariff Exemption that had been in place for several decades. “De minimis” is a Latin phrase meaning “about minimal things” or “trifling,” and it refers to something so small or insignificant that the law will not consider it. The term is used in various legal and tax contexts, such as the de minimis fringe benefit rule in tax law, which excludes small, infrequent benefits from taxable income, and the de minimis rule for imports, which allows low-value goods to enter a country duty-free. 

The U.S. de minimis exemption started in 1938 when the Tariff Act of 1930 was enacted to allow low-value imports (initially $1 or less) to enter the US duty-free, saving the government the expense of collecting small amounts of revenue. The threshold was raised over time, most recently to $800 in 2015, but the exemption was ended for many goods on August 29, 2025. Needless to say it now costs quite a bit more to order goods from overseas and is designed to make online shopping from overseas a thing of the past. Some countries have even halted overseas shipments to the US until it becomes more clear who is responsible now for paying these duties. 

Additionally, the U.S. Court of Appeals for the Federal Circuit held Friday that Trump overstepped his presidential authority when he imposed levies on virtually every country in the world as part of his April 2nd “liberation day” announcement. Before court action, Trump’s tariffs were set to affect roughly 69% of U.S. goods imports, according to the Tax Foundation. If struck down, the duties would impact just roughly 16%.

The ruling injects a heavy dose of uncertainty into a central tenet of Trump’s economic agenda, which has rattled the global economy since April. For now, the appeals court ruling states the duties on goods from most countries — as high as 50% for a few countries — will stay in effect until Oct. 14, to allow the Trump administration time to appeal the decision to the U.S. Supreme Court.

Thus far, the tariffs have been applied to incoming product this summer but could be halted or even rolled back to pre-“Liberation Day” levels should the Trump Administration fail to overturn this decision. President Trump maintains that the tariffs are still in effect despite what the Appellate Court says, which could lead to the Supreme Court having to step in to settle the matter.

Needless to say, product manufactured in both Bangladesh and China — the two principal regions where diecast collectibles are presently made — may no longer be affected by Trump’s retaliatory tariffs, meaning both wholesale and retail prices could well be lowered significantly for at least the foreseeable future. Thus far we haven’t heard back from our suppliers as to what they plan to do and when and how it will impact our business.

We’re on the cusp of knowing if the Trump administration plans on following through with its proposed tariffs set to be imposed on May 2nd. As you are no doubt aware by now, we have no idea where we stand with certain manufacturers, particularly those located in China, where the bulk of hobby-related products are still made. What is clear is that many of these companies will not be able to ship their products to the US if the proposed 145% tariff is, in fact, imposed as many fear. Faced with rising inflation costs, the consumer will tolerate only so much before moving on and purchase other items. Supposedly, the Trump administration is in talks with China over the tariff issue, but even if some sort of lesser tariff is agreed upon its unlikely companies will still be able to import their products into our country and hope to turn a profit, or have their products available for the holidays. Part of the problem has to do with neither side wanting to back down first and be perceived as caving to the demands of the other party. This “Blink-manship”, as I like to call it, will end up hurting both countries, ensnaring innocents on both sides until a fair and adequate resolution can be reached. Some have even referred to the stand-off as the first shots in a Sino-Taiwanese War, which many believe will eventually occur some time in the not-too-distant future.

For now, we’ve grouped the affected companies and their products into our web site’s October 2025 Upcoming Release section. Should anything change we will, of course, update this section and attempt to provide the most accurate information possible to our clientele to keep you informed and up-to-date so you can plan your purchases. We recognize that this isn’t the best course of action given the level of uncertainty permeating the market but its all we can currently do given our own situation. In the meantime, we are asking that you refrain from asking us about the expected arrival dates of these products since we simply have no idea about their fate. And, as a cautionary move, we believe that many of the products we do have in stock may see their prices rise as demand remains strong and supplies begin to dwindle. Food for thought if you have your eye set on anything marked as being in stock.

Earlier this week, we heard from our principal distributor who stocks several key lines, among them the Hobby Master range of diecast military products. Hobby Master, as it turns out, is made in Bangladesh, which isn’t subjected to the same abnormally high tariffs the Trump administration plans to impose upon China in early May. Unfortunately, this doesn’t mean that Bangladesh has dodged a bullet — far from it. According to the latest tariff plans, Bangladesh will be subject to a 37% tariff, making any products we import from the country exceedingly expensive.

According to our distributor, both the April and May shipments of Hobby Master products are not subject to the tariffs. However, both the June and July shipments will have a 10% tariff tacked on to their existing prices, meaning we’ve had to adjust the retail prices for said items by approximately the same margin. But here’s where it gets dicey. Shipments that do not clear customs by July 8th will be subjected to the 37% tariff already discussed. As a result, our distributor plans to delay the arrival of both the August and September shipments until such time as the tariff picture comes into greater focus. In other words, if the current crisis is not averted and the tariffs do, in fact, get imposed it’s likely that we could see a pause in shipments from Hobby Master, perhaps indefinitely or at least until everything has been straightened out. Lines such as Corgi, Oxford, JC Wings, Panzerkampf and Dragon will almost certainly face the same dilemma since they are manufactured in the PRC, where the current proposed tariff has been pegged at 145%, making them far too expensive to even consider importing. Politics aside, this is clearly a recipe for disaster for a great many industries, not just ours.

Needless to say, we’re hoping that the current trade war is settled to everyone’s satisfaction in the coming weeks to prevent this scenario from occurring. If it should happen, there’s a good bet that product already in stock will go up in price too, since demand will likely remain strong and supply won’t be able to keep pace. As it stands right now, we have ample supplies of each line but cannot predict our stock situation towards the later part of the year should we experience a run on the brands. The same holds true for virtually every segment of the toy industry, so what you see available on store shelves may become scarce at a later date or see their prices jacked up well beyond the norm. You can bet that manufacturers, distributors and retailers are lobbying the Trump administration to re-consider its stance on tariffs, or at least roll them back to acceptable levels so that the holiday season isn’t a lost cause. Thus far its not clear if the proposed tariffs will have an adverse effect on new product announcements since product will still be manufactured for other regions around the world but perhaps in lesser quantities.

If the trade war does goes on for much longer, additional problems could creep into the overall equation that would almost certainly affect the retail sector. For instance, right about now is when most Asian manufacturers are beginning to produce toys and other related products for the upcoming holiday season. If these manufacturers are forced to wait and delay their manufacture, a situation could occur where our US ports are clogged with an abundance of late shipments, a scenario very reminiscent of what occurred during COVID. So even if the green light is issued to make and ship holiday-related products, it isn’t certain if they’ll make it in time to be of much value. Food for thought in today’s economic climate where events seem to be changing on an almost daily basis.

With the Trump Administration’s April 2nd deadline for imposing tariffs fast approaching, it appears as if several manufacturers and distributors are taking a wait-and-see stance when it comes to importing their goods into the US. Presently its not clear how much of a tariff will be applied to product being imported from such countries as China, one of the principal makers of diecast models, and a longtime target of the current administration. Indeed, one of our distributors has already indicated that they plan to increase prices on several lines that they import from China weeks ahead of the looming deadline. Another has thus far decided to delay the import of several lines for the foreseeable future until the matter has been settled one way or the other. Should the tariffs go into effect next month, its possible that these lines will be held up at the ports for several months until a decision has been reached regarding their cost to consumers.

As it stands right now, it may be a rather dry summer and fall in terms of new product making it to market, or at least until a trade agreement has been reached that satisfies both nations. To date, we’ve had to adjust the prices on new product coming in from Air Force 1, Luft-X, Wings of the Great War and Armor Collection. Other companies — most notably Panzerkampf, Legion, Corgi, Dragon and JC Wings — may soon have to be cost adjusted if the trade negotiations fail and pressure builds to import these lines to prevent them from languishing in limbo. Still other key manufacturers — Hobby Master, among them — are made in Bangladesh, may or may not be affected by tariffs since talk seems to change on a week-by-week basis based upon the mood and climate in Washington. To be fair, the president has said that he is “flexible” regarding the imposition of across-the-boards tariffs but as we all know by now flexibility can have different meanings depending upon who we are talking about and when the conversation takes place. In any event, we hope to have further updates regarding the tariffs and, in so doing, discuss possible delays in receiving certain lines as trade negotiations progress.

With the recent imposition of a 10% tariff on goods coming from China, it remains to be seen how both manufacturers and distributors decide to pass along these cost increases to the trade as well as the consumer in both the near- and long-term. In my opinion, most will take a wait and see attitude over the next few weeks to see if these tariffs will either be rolled back or remain in place based upon China’s reaction. Bear in mind, its entirely possible that not only will the tariffs remain in place but they could increase further should the Administration feel it necessary to raise the stakes even higher if China doesn’t get the subtle message or decides to retaliate in kind. During his presidential campaign, Trump had threatened a 60% tariff so now that he’s in office anything and everything is on the table. Presently, its not clear if certain manufacturers — among them Hobby Master, Panzerkampf and a few others — will be affected by the tariff and whether or not companies operating outside China will pick up sales by being located outside the PRC.

Its entirely possibly that the new Administration will up the stakes even further by placing an across-the-board tariff on every country that currently does business with the US, all in an effort to demonstrate to the world that we mean business when it comes to concessions. Over the weekend, both Canada and Mexico, our nearest neighbors and close allies, saw a 25% tariff imposed upon them, so it isn’t a stretch that even more allies will get the same treatment should Trump feel its within his rights to push the bounds even further.

So, as we start 2025, things aren’t looking especially great in the commercial space unless something substantial occurs by one or both parties. Geo-political events being what they are, it could be a situation where one side is waiting for the other to blink before they can formulate a response to the US initiatives. It isn’t a pretty scenario and one that will undoubtedly lead to a scarcity of product and higher prices for what does come into the country.

With President-Elect Trump set to take office later this month, its unclear how his assumption of power will affect certain segments of the business world that currently import products from China. As part of his electioneering and political campaign, Trump had repeatedly promised to place a tariff on certain countries that he believes take advantage of the United States. China is one such country Trump has targeted, claiming they are ripping off our intellectual properties and underselling US-based companies for years on end.

Many of the companies that we do business with are located in mainland China so it doesn’t take a genius to realize that said companies will undoubtedly be adversely affected by tariffs. Many companies could see as much as a 60% charge levied against them unless the Chinese government decides to play ball with the US. Other companies we do business with are located in Bangladesh and Mexico so its unclear if these companies will be affected by tariffs or by how much.

One of our distributors has already indicated that they will be passing along any additional charges they may incur to their clientele until the tariffs have either been scaled back or removed entirely. If this occurs, we will make an announcement indicating that the pre-order price for such-and-such line will be increased, then pass along these costs to our own clientele in line with the revised MAP. We’re sorry to have to make this announcement and/or increase the price for certain lines but hope you understand that we play no role in these potential cost increases which could take effect later this month.