In response to shifting global trade policies, a leading toy and game producer is advancing efforts to diversify its supply chain, aiming to reduce U.S.-bound production from China to below 40% by 2026. This strategic move underscores a growing trend among global manufacturers to adapt sourcing models for greater resilience and flexibility.
Currently sourcing from eight countries, the company plans to expand to up to ten, with a notable increase in production volume expected from locations such as India and Turkey. The goal is to mitigate tariff-driven costs as the U.S. maintains a 145% tariff rate on selected Chinese imports, while China applies a 125% duty on U.S. goods in return.
Despite the complexity of transitioning production away from China, which remains a vital hub due to specialized manufacturing capabilities, the shift is seen as a long-term investment in supply chain adaptability. Some logistical challenges—such as cost differences between production hubs—are anticipated in the near term, but efforts are underway to maintain a cost-neutral balance over time.
This initiative also benefits from a significant share of domestic and digitally delivered products, reducing overall exposure to international trade volatility. The company continues to model scenarios for tariff impact while reinforcing supply chain structures that can thrive amid global uncertainties.
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