A US-owned toy factory in China is on the brink of closure after President Donald Trump’s recent 145% tariff on Chinese imports came into effect, disrupting global supply chains and jeopardizing American-linked operations overseas.
Huntar Company Inc., an Illinois-based toy maker, owns a 600,000-square-foot facility in Shaoguan, Guangdong Province, which has been producing educational toys for U.S. retail giants like Walmart and Target. Products such as Learning Resources’ “Numberblocks” — popular math learning toys for children — were among the factory’s primary outputs.
However, following the tariff implementation on April 9, clients swiftly began pulling orders. Huntar’s CEO, Jason Cheung, preemptively halted production at the plant, predicting the devastating impact of the import duties on their operations.
“The moment the tariff announcement dropped, we started seeing cancellation emails. Our customers can’t afford to absorb these costs,” Cheung said.
Tariff Fallout Across Borders
The tariff’s ripple effect is not limited to China. Huntar employs staff in both the U.S. and China, and with operations frozen, the company is now considering layoffs across its international workforce. Cheung described the tariff policy as a “crippling blow” to mid-sized manufacturers trying to remain competitive in the U.S. market.
This policy is part of Trump’s broader effort to pressure China on trade imbalances. However, critics argue it’s American businesses — especially those with overseas production arms — that are bearing the brunt.
Industry-Wide Concern
This development comes amid growing unease in manufacturing circles. Many U.S.-owned factories in China are evaluating contingency plans, including relocating production or scaling down operations. But these transitions come with their own set of financial and logistical hurdles.
Analysts warn that while the tariff strategy aims to protect U.S. manufacturing, it may inadvertently penalize American companies with international supply chains — especially in sectors like toys, electronics, and consumer goods.
