President Trump appeared to acknowledge Wednesday that toy shortages are likely this year as the impact of his tariff hikes continues to ripple through the economy.
Retailers across the country are becoming increasingly anxious that the ongoing trade war, combined with steep tariffs on Chinese imports, could leave store shelves bare during the holiday season. Many companies are warning that higher prices and limited supply could result in a difficult Christmas for families.
The heads of major retail chains, including Walmart, Target, and Home Depot, reportedly met privately with the president last week to warn him directly about the potential fallout highlighting the risk of product shortages, inflated prices, and even store closures if the supply chain disruptions persist.
When asked about those concerns on Wednesday, Trump offered a strikingly casual response. “Somebody said, ‘oh, the shelves are gonna be open,’” he told reporters. “Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more.”
He also added, “Christmas might not be what it used to be. This year could be tough for kids, I’ll admit that. But we’ll make it through, and it’ll be better next year. It’s all part of fixing the system.”
Trump’s remarks come as business groups and industry leaders sound the alarm. The head of the Toy Association, Greg Ahearn, said in a recent interview that the industry is dealing with a “frozen supply chain,” warning that if production doesn’t resume soon, there’s a high chance of widespread toy shortages by the holidays.
Despite these warnings, Trump continues to defend his trade agenda. He argues that raising tariffs will push companies to bring manufacturing back to the U.S., ultimately boosting domestic job growth and increasing tax revenue. Critics, however, argue that the short-term effects are more damaging higher prices for American families and lost revenue for exporters and retailers.
Some industry leaders are trying to reassure the public. Walmart CEO Doug McMillon said earlier this month that people will still find ways to celebrate. “There will be a Christmas, and people will celebrate Christmas, and they will buy items, and we will sell them those items,” he said. But he also admitted that higher prices and limited inventory may force customers to rethink how much they buy this year.