Tariff Tensions Hit Baby Businesses Hard

Tariffs on imported baby products will make it more expensive for parents to buy gear for their newborns

• Tariffs on baby gear will increase the cost of baby products by up to 145% for imports from China
• Over 90% of baby products, including strollers, car seats, and nursery furniture, are made overseas
• Tariffs will disproportionately affect small businesses, which rely heavily on imports

The arrival of a new baby is an exciting time for parents, but with tariffs on imported baby products, it’s becoming increasingly expensive for them to prepare for the arrival of their little one. In the past few weeks, a couple, Sam Rutledge and his wife, have found themselves racing against the clock to buy essential baby gear. Rutledge, a high school physics teacher, explained that they had a few months to research and purchase the necessary items, but the announcement of tariffs by President Donald Trump in April turned their slow process into a sprint. The couple has bought two strollers, a car seat, a nursery glider, a crib, and a high chair, all of which are made overseas. Rutledge stated that they decided to purchase these items in advance since the tariffs would make them more expensive. Raising a child in America is never cheap, with the first year alone costing an average of $20,384, according to Baby Center, a parenting website. However, tariffs on imported goods will significantly increase the cost of baby products. According to the Juvenile Products Manufacturers Association, 90% of core baby care products and the parts that go into making baby paraphernalia are made in Asia, with the vast majority coming from China. Overseas manufacturing has been the norm in the industry for decades, and the association’s executive director, Lisa Trofe, stated that it’s a trend that’s unlikely to change. Not always has it been this way, however. Munchkin Inc. CEO Steven Dunn founded his company in 1991, and at the time, it made baby bottles in California with tooling from New Jersey. However, over the years, the manufacturers he used shut down, and the cost of doing business in the U.S. skyrocketed. Now, about 60% of Munchkin’s 500 products are made in China. In response to the tariffs, Dunn halted orders from China and instituted a hiring freeze at Munchkin’s California headquarters, where 320 people are employed. He expects that Munchkin will run out of some products within three months. Dunn stated that he tried to reduce his dependence on China in recent years, shifting some manufacturing to Vietnam and Mexico. He also communicated with American manufacturers to see if one could make Munchkin’s new Flow Nipple Shield, but most said they couldn’t do so. “It’s not enough tool makers and manufacturing expertise and automation and skilled labor in the U.S. to make the thousands of products the juvenile industry needs,” Dunn said. The Juvenile Products Manufacturers Association asked the Trump administration for a tariff exemption, arguing that baby products are essential for children’s well-being. Trump exempted some baby products, including car seats and high chairs, from import taxes during his first administration. However, he hasn’t said whether he would consider doing so again. The impact of tariffs on small businesses has been significant. Nurture&, a company that makes a popular nursery glider and other baby furniture, stated that it started lowering prices on some items when the tariffs hit. The company, which was founded in 2020, said it would keep those lower prices in place until April 30, but after that, it may not be able to absorb the full cost of the import duties. “These are large purchases, these are investments, and this is a very sensitive life stage,” said Jill Gruys, the Chief Merchant of Nurture&. “We want people to make the best decision for their budget and their family.”
Elizabeth Mahon, the owner of Three Littles, a baby store in Washington, expressed her concern about the tariffs. She stated that she’s worried the tariffs will make essential products too expensive for some families. Mahon volunteers twice per month at the Department of Motor Vehicles, where she teaches people how to buckle their kids safely into car seats. She said that some families still need to be persuaded to use car seats, and higher prices would be another deterrent. “No one is dying if they can’t buy a toy, but if they don’t have access to car seats, kids will get seriously injured,” said Mahon. At her own store, Mahon is receiving notices that some manufacturers plan to introduce steep price increases in May. She feels lucky that she could rent a storage facility and build up inventory ahead of the tariffs. However, for many small businesses, the extra costs are “a death sentence.”
The Little Seedling baby shop in Ann Arbor, Michigan, owner Molly Ging said she would normally be putting in Christmas orders at this time of year. Instead, she’s sorting through price increase notices from many of the vendors she works with. “It’s a lot to manage, and I just have no idea how it’s going to play out,” said Ging. Business is brisk right now, with customers hoping to beat tariff-related price increases. However, Ging worries about her 13 employees – all moms who bring their kids to work – and about whether she can maintain enough inventory to meet future demand. “Babies don’t stop being born because there’s tariffs,” said Ging.

What’s at Stake for Baby Businesses?

The Impact of Tariffs on Small Businesses

• Small businesses rely heavily on imports, making them more vulnerable to tariffs
• Tariffs will increase the cost of baby products by up to 145% for imports from China
• Small businesses may struggle to maintain inventory and meet demand

What’s Being Done to Help Baby Businesses?

The Juvenile Products Manufacturers Association

The Juvenile Products Manufacturers Association is advocating for a tariff exemption for baby products, arguing that they are essential for children’s well-being.

The association has asked the Trump administration for a tariff exemption, but so far, no decision has been made.

Conclusion

Tariffs on imported baby products will significantly increase the cost of baby gear for parents. Baby businesses are feeling the impact, and it’s unclear how they will adapt to the new tariffs.