The scarcity of toys is in the pipeline, as North -American companies cancel orders with rates that put Christmas at risk “at risk”

• The vast majority of American toy companies Orders are annulled in the midst of prohibitive rates in China, which means that almost 80% of all toys sold in the United States, a group in the industry warned that the toy supply chain is frozen, threatening to expel many businesses from the business and jeopardize Christmas this year.

For consumers, the holiday shopping season starts in about six months. But for retailers and manufacturers, this is the Christmas season, and the massive rates in China frozen the supply chain.

According to a recent Toys Association SurveyA group from the American industry that represents manufacturers, 80% of medium-sized companies and 64% of small businesses are canceling orders. In addition, 87% of medium -sized companies and 81% of small businesses delay orders.

And many of these companies cannot even survive enough time to get to the holidays. Almost half of the small and medium-sized businesses, representing 96% of US toy companies, said they would go out of business within weeks or months due to current United States tariff policy.

“The 145% rates in Chinese imports have frozen the toy production supply chain, with a devastating impact on SMEs, many of which are family property … including high levels of canceled orders and significant purchases of retail sale, which will give rise to defaults and failures of loans,” said the toys association, according to “Christmas 2025.”

This is because the holiday shopping season can make or break the store’s background line for the year. In fact, Black Friday is traditionally when many retailers become profitable, which means that they go from red to black ink in their records.

In the meantime, China produces almost 80% of all toys and 90% of the Christmas goods sold in the United States, and the driving time to obtain factories in stores is about four to five months, according to the New York Times.

Greg Ahearn, CEO of the Toy Association, told the Moments That if production does not start soon, “there is a high probability of a shortage of toys this holiday season.”

And Jennifer Bergman, the owner of the West Side Kids toy store in New York, said he is worried that he may not have toys for sale for Christmas.

She said to the Moments This scarcity was already taking shape, saying that an importer who managed a great scooter order for her had twisted a shipment to Canada to avoid US rates, with Bergman ready to do only part of his order.

President Donald Trump, for his part, acknowledged on Wednesday that his rates could affect the availability of toys, but reduced gravity.

“Well, maybe children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple more dollars,” he told journalists.

By the way, toy giants Hasbro informed Strong earnings from the first quarter Last week and maintained its 2025 orientation, citing its ability to quickly change production to mitigate fares.

But MGA Entertainment, Bratz’s maker, Lol Surprise and Little Tikes, was less confident and warned that Hasbro’s results do not reflect the general situation.

“Consumers, especially families who already feel tightening, will be the ones who suffer,” said the founder and CEO of MGA before Fortune Lake Sydney. “Come this Christmas, we are looking for significant scarce through the corridors of toys, with prices up to two digits or more.”

This story originally presented to Fortune.com