The American Toy Association: The level of tariffs is far beyond what the industry can bear.

Before the performance of the second quarter was announced, analysts and experts said that the toy industry continues to face a challenging environment. Steve Pasierb, CEO of the American Toy Association, said that in the past two months, about 60% of toy manufacturers have implemented layoffs. He said, "You can see the seriousness of the impact," "Hasbro will lay off 3%, medium-sized companies will lay off 20%, small business owners say they are at risk of closing down." He added that high tariffs on goods from the manufacturing centers in Southeast Asia have eroded profit margins and led some companies to completely cancel holiday season orders. Pasierb said, "These tariffs are not numbers that our industry can afford."