US Toymakers Cut Batteries and Features as Tariffs Drive Up Costs

Batteries Not Included, and That’s Just the Start

If you’ve bought a toy recently and noticed something missing, like batteries, accessories, or even a chunk of the packaging, you’re not imagining things. Higher prices have officially arrived.

Major U.S. toymakers are quietly scaling back product features to absorb rising costs from new tariffs on Chinese imports.

A new report from Reuters confirmed what a lot of us in the toy space have already seen behind the scenes. The updated trade policy is leading to increasing in toy prices and toy makers looking for ways to reduce costs. Since nearly 85% of U.S. toys are made in China, that’s a major hit to the supply chain.

Big Names, Big Cuts

Instead of raising prices across the board, brands like Hasbro, Mattel, and MGA Entertainment are making surgical cuts. MGA CEO Isaac Larian told Reuters the following.

“We’re taking out accessories, we’re taking out batteries, we’re making packaging smaller. It’s like we’re going backward.”

For RC hobbyists, this shift is already showing. We’ve heard from customers buying battery-powered vehicles only to find the batteries sold separately for the first time in years.

Retailers Sound the Alarm

NPD Group data shows the average toy price has crept up 6% this year, but it’s the “hidden inflation” that has collectors and parents both frustrated at the same price, but with less toy.

Here’s a few of the common ways major toy manufacturers are cutting costs to keep prices low. In the end, consumers end up paying more for the same value. And you can bet the hobby space including everything from slot cars to dirt bikes will follow suit.

Toymaker	Change Implemented	Impact on Product
Hasbro	Slimmer packaging, fewer accessories	Reduced shelf space needed, fewer included items
Mattel	Simplified paint apps on dolls	Visual downgrade to lower costs
MGA Entertainment	Battery removal, offshore production shift	Lighter boxes, delayed availability

What’s Changing for Toys

The long-term risk is what this does to play value. At The Toyz, we’re used to reviewing high-spec RC trucks, boats, and planes that feel worth every penny. But if you’re shipping a product with fewer included parts just to stay competitive, that value perception drops fast.

Retailers are adjusting too. Investopedia reported that Hasbro is urging early holiday shopping this year, worried that tighter margins and lower inventory will lead to shortages on popular items. And toy sections are already showing signs of cautious ordering.

Price Hikes Expected

On the collector side, some see a silver lining: lower-cost SKUs could make rare variants more valuable over time, especially if certain full-feature versions get phased out. But that’s a bet most casual buyers aren’t thinking about when they’re just trying to find a reliable RC car brand for under a few hundred dollars.

Toy industry leaders are bracing for noticeable price jumps this fall. Greg Ahearn of the Toy Association told news reporters recently about similar concerns.

“We’re expecting retail price increases in the 15-20% range across the board. This could also lead to more fakes and knock-offs across the toy industry.”

For parents already feeling inflation fatigue, this may come as another financial pinch just before the holiday rush. Retailers are reportedly planning tighter inventory buys to compensate.

Some toy lines will shrink in scope, while others could disappear from shelves entirely if suppliers can’t maintain margins under the tariff pressure.

What are you seeing out there? Drop us a comment below.