Toys getting cheaper as other prices rise, likely due to China-U.S. tensions

Toys have become cheaper in the Netherlands over the past year. This is striking, as products have generally become increasingly expensive. Experts believe that increased production in China and the trade tensions between that country and the United States may be playing a role.

According to Statistics Netherlands (CBS), toy prices were 1.5 percent lower in October than in the same month last year. Compared to 20 years ago, prices remained the same.

CBS chief economist Peter Hein van Mulligen said that prices have been falling since 2022, after rising in the previous decade. “Toys from well-known brands are more often produced in China and neighboring low-wage countries. This keeps price trends in check.” In addition, consumers are buying more toys from Chinese online stores. “That also helps keep prices low.”

Sector banker Dirk Mulder at ING also suspects that the high import duties imposed on China by U.S. president Donald Trump earlier this year have led to cheaper toys. “Many toys for the holidays were already ordered in the spring, and many companies in America stopped buying toys. Chinese factories started looking for alternatives and ended up in Europe.” According to the sector banker, many retailers therefore benefited from “substantial” discounts. The U.S. has since significantly reduced import duties.

The trade tensions between the U.S. and China have led to the dollar’s exchange rate against the euro and container prices falling this spring, Mulder said. This development has also led to more favorable prices for retailers in the Netherlands. He also suspects that toy retailers offered more Black Friday discounts in October and pointed out the popularity of inexpensive Chinese webshops like Temu and AliExpress.

A spokesperson for Intertoys reported that the toy store chain saw a “significant” increase in the number of Sinterklaas purchases this week compared to last year. However, consumers spent slightly less on average than in 2024. In previous years, he said, the Dutch often had more expensive gifts on their wish list.