Tariffs and Rising Costs Impacting Toy Prices for Christmas 2026
Rising oil prices from the Iran war are affecting toys, many of which are made from oil-derived plastics .
Manufacturer Strategies:
3D printing toy components in the United States to avoid tariffs
Introducing all-new toys to avoid price comparisons (if a toy didn't exist last year, consumers can't compare prices)
James Zahn, senior editor of The Toy Insider, explained: "Where someone might say, 'Hey, this toy was $10 last year and now it's $12,' if it didn't exist last year, they don't necessarily have that exact comparison, so they can play with that a little bit" .
The Port of Long Beach saw the second busiest July in its 115-year history as retailers moved cargo before tariffs kicked in .
Industry Summary
Christmas 2026 is characterized by:
Early Shopping Trend: 68% of consumers plan to shop early to avoid delays; retailers starting holiday promotions as early as August
Nostalgia Trend: Retro-inspired decorations, vintage colour palettes, and "Christmas at Grandma's" aesthetic are leading holiday décor
Pink Christmas: Pink emerges as a standout colour for 2026, paired with blues and other non-traditional palettes
Beauty Advent Calendars: Sephora's 2026 calendar features 41 products worth over £1,000, including 27 full-size items
Market Expansions: Liverpool Christmas Markets add ice skating; Christkindlmarket celebrates 30 years in Chicago
Early TV Programming: Great Christmas channel launches August 26 with 186 Christmas films
Tariff Impact: Toy makers using 3D printing and new product introductions to manage tariff-related cost increases
Colour Expansion: Décor moving beyond traditional red and green toward pinks, pastels, brights, and moody palettes
Luxury Food Trends: Chocolate brioche gingerbread houses and French pastry creations joining traditional Christmas desserts
