European Import Tariffs, a Burden on Small Businesses

Small businesses thrive on agility, tight margins, and close customer relationships. When tariffs are imposed on goods imported from the European Union, we feel the squeeze acutely. High duties translate into elevated costs, eroded profit margins, and a scramble to remain competitive.

A New 15% Duty on European Imports

On July 27, 2025, President Trump announced a preliminary trade deal with the European Union that imposes a 15% tariff on most imports from the 27-member bloc, including Germany. This is down from a threatened 30% rate. The levy applies to all toys manufactured in EU countries—everything from high-end Anchor Stones to collectible dolls assembled in Spain.

Pricing Options

When tariffs drive up the cost of Anchor Stones, we have two unappealing choices:

1. Keep prices flat and sacrifice margin.
2. Increase retail prices to maintain profitability.

With tight operating budgets, most of us small businesses opt for the latter. Large toy manufacturers like Mattel and Hasbro have disclosed plans to raise list prices to offset approximately $100 million and $60 million in tariff expenses this year, respectively.

What to Expect

Trump’s 15% tariff on European toy imports will eventually show up here in our retail prices. We have been working closely with the factory in Rudolstadt Germany to manage all import costs including transport. But, for parents buying building sets for children and for collectors, that means pricier products and tougher choices at checkout.