How a Chinese-made toy gets to a US retailer

Key points

• 3% of toys imported into the US in 2024 came from China, worth $9.8bn.
• A $30 toy costs $6 to make in China, with the factory getting about 20%.
• US tariffs on Chinese toys are currently 12.5%, paid by American importers.

Nearly eight in 10 toys imported into the US in 2024 came from China, according to US government figures. These toys were worth $9.8bn. With Christmas approaching, the toy industry is entering its busiest period.

The BBC World Service's Follow the Money series traced the journey of a toy from a factory in Guangdong province, China, to a US retailer. The article breaks down where the money goes at each stage.

From factory to port

In Dongguan, the Mihox factory employs over 800 people and makes about 55 million toys a year for the American market. Melanie Wang from the sales team says a toy takes one to two years from design to finished product. The factory receives about 20% of the US retail price, or $6 for a $30 toy.

Chinese factories typically make a profit of 3% to 10%, according to Jay Foreman of US toy firm Basic Fun. Samson Ko, president of the Toys Manufacturers' Association of Hong Kong, says production remains labour intensive and Chinese labour is no longer cheap. Yet fewer than 10% of his members have moved production outside China.

We pay 100% of the tariffs, let there be no doubt about that

— Rick Woldenberg

Shipping and tariffs

Toys go by truck to a port like Shenzhen. Ivy Tse of FreightAmigo says a cargo ship takes about 15 days to the US west coast and 25 to 30 days to the east coast. Freight adds about 10% to the manufacturing cost, or 60 cents for a $30 toy.

Once in the US, a tariff of 12.5% is charged on the manufacturing price. For a $30 toy, that is 75 cents. Rick Woldenberg, CEO of Learning Resources, says his company pays 100% of the tariffs. The total cost to make and ship the toy is $7.35, leaving $22.65 in the US.