Trump A Grinch Or Santa For Christmas? 'Children Will Have Two Dolls Instead Of 30 Dolls'

Parents and grandparents looking to fill Christmas stockings this year might find themselves facing a frustrating surprise: empty toy shelves. Thanks to a trade war sparked by steep import tariffs imposed by President Donald Trump, the usual holiday toy hunt could turn into a scramble

Trump, also a grandparent, suggested kids will probably just do fine with fewer toys.

What Happened: The president’s response to a recent question from a journalist about U.S. tariffs on China could provide an early warning of what Christmas could look like if things don't change.

Trump said China has made over a trillion dollars selling the United States things they don't need. The president brushed aside concerns about shelves being empty in stores, including those selling toys.

"Well, maybe the children will have two dolls instead of 30 dolls," Trump said. "And maybe the two dolls will cost a couple of bucks more than they would normally."

Trump said ships from China are "loaded with stuff we don't need."

The president’s latest comments underscore his administration’s stance that more items should be manufactured in the United States, even if they cost consumers more.

Major toy companies could suffer this Christmas with less product on the shelves and potentially higher prices for consumers to offset tariffs.

Public toy companies include Mattel Inc MAT, Hasbro Inc HAS and Jakks Pacific JAKK. Trump's comments about dolls could apply to several companies including Mattel, owner of the Barbie brand.

Read Also: Billionaire Richard Branson Criticizes Trump’s Tariff Decisions: ‘World Was On The Verge Of A Complete Meltdown’

Why It's Important: A New York Times report said toy makers and toy stores are pausing orders for the year-end holiday season, with tariff concerns now taking center stage.

China produces around 80% of all toys and 90% of all Christmas goods sold in America, according to the report. With tariffs of up to 145% currently in place on China, companies are not ready to pay these higher prices now, which could put the Christmas season in jeopardy.

Items like Christmas trees, Christmas decorations and toys take four to five months to manufacture, package and ship to the United States, all steps that have been put mostly on pause in the region.

"We have a frozen supply chain that is putting Christmas at risk," Toy Association CEO Greg Ahearn said. "If we don't start production soon, there's a high probability of a toy shortage this holiday season."

Ahearn said he has pushed the White House administration for a 24-month reprieve that could give toy companies more opportunities to find ways to manufacture their products in the United States.

Barring any changes to the tariffs on China and the pause to the toy sector and Christmas decorations sector, Christmas could look significantly different for many Americans this year.

There could be fewer presents under the tree, and those will all likely cost more.

Toy companies could begin cutting guidance or sounding cautious on upcoming earnings reports, which is an item that will be closely monitored by analysts and investors.

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