Tue May 13 06:06:29 UTC 2025: ## US-China Trade War Forces American Toy Company to Brink of Collapse

**Bengaluru, India – May 13, 2025** – The escalating US-China trade war is pushing American-owned toy manufacturer Huntar Company Inc. to the brink of collapse, highlighting the devastating impact of tariffs on businesses straddling both sides of the conflict.

Huntar CEO Jason Cheung, whose father founded the company 42 years ago, is desperately trying to relocate his operation from China to Vietnam. Already having slashed production by 60-70%, laid off a third of his Chinese workforce, and reduced wages for remaining employees, Cheung estimates he has only a month before the company runs out of money.

The company, which manufactures educational toys for major US retailers like Walmart and Target, is caught in a trade war paradox. While Cheung, an American citizen, represents the type of small business Trump’s tariffs were meant to protect, his Chinese factory makes him the embodiment of the “Chinese factory owner taking American jobs” narrative. The situation underscores the difficulties faced by businesses caught in the crossfire.

The challenges of relocation are immense. A shortage of skilled labor and suitable facilities in Vietnam, coupled with the high cost of moving and replacing heavy equipment, present nearly insurmountable obstacles. This predicament is not unique to Huntar; the Toy Association reports that about 80% of toys sold in the US are manufactured in China, and the sector is facing a crisis. Many small and mid-sized US toy companies fear going out of business due to the tariffs, with over 45% expecting closure within months.

While China is reportedly engaging in trade talks with the US, Cheung believes that even a significant reduction in tariffs wouldn’t save his company. He states that tariffs above 50% are unsustainable, rendering even a potential reduction to 80% from the current 145% ineffective. The situation is exacerbated by cancelled shipments totaling $750,000, which are unlikely to be fully recovered even if the trade war ends.

The crisis for Huntar is unlike past challenges like the 2008 recession and the COVID-19 pandemic, as current production has essentially halted overnight. Cheung’s predicament reflects the broader struggle faced by US companies operating in China, caught between escalating tariffs and the immense logistical and financial hurdles of relocation. The future of Huntar, and countless similar businesses, hangs precariously in the balance.

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