Understand
Tracing the journey of a Chinese-made toy to a US retailer
Overview
China remains the world's largest toy manufacturer, supplying nearly 80% of toys imported into the United States. A BBC News report traces the journey of a typical $30 toy from a factory in Guangdong province, through shipping logistics and US border tariffs, to its final sale in an American store, examining how the revenue is distributed along the supply chain.
Key points
- Nearly 8% of toys imported into the US in 2024 came from China, totaling $9.8bn in value.
- The manufacturing factory typically receives about 20% of the US retail price (around $6 on a $30 toy), from which factories make a profit margin of 3% to 10%.
- Shipping a cargo container from Shenzhen to the US west coast takes about 15 days, and adds roughly 10% to the manufacturing cost.
- US importers pay a basic tariff of 12.5% on the manufacturing price of Chinese toys to Customs and Border Protection.
- Approximately 75.5% of a toy's retail price remains in the US, shared among transport firms, US toy companies, and retailers.