It’s hard to believe that the holidays are around the corner. Yes, it’s only September but pumpkin spice lattes are out in force, Halloween decorations are being put up, and before you know it the end of the year craziness will be upon us.
I am an eternal procrastinator when it comes to holiday shopping. So it would usually be way too early for me to even be thinking about what gifts I might get my girls or family members this year. I usually save that stress for after Thanksgiving (I don’t recommend this strategy BTW).
But with so much news about tariffs, extra taxes a country requires for imports or exports from other countries, I started to wonder how they might impact toy and general holiday shopping this year.
Read on to hear what Elizabeth Ayoola, Co-Host of NerdWallet’s Smart Money podcast, had to say about how tariffs might impact holiday shopping this year and strategies to help you prepare.
Elizabeth Ayoola, Lead Multimedia Producer and Co-Host of the “Smart Money” podcast
Before delving into the podcast world, Elizabeth acquired over 10 years of experience as a writer, with seven spent covering personal finance topics. Her articles have appeared on platforms like The Associated Press, The Washington Post, and Parents.com. Elizabeth has also done extensive spokesperson work and appeared on multiple renowned national networks like Good Morning America, ABC, NBC, and Fox to discuss money.
Tariffs will likely make toys more expensive
When tariffs are in place, companies must pay an additional amount to receive goods from another country. How much extra can vary depending on things like the type of item and what country it’s coming from. That extra cost eats into the company’s margins, so oftentimes the company will respond by increasing the price of that item.
“Essentially, anything imported from countries targeted by tariffs will likely see higher prices,” Ayoola says. “On average, tariffs can add anywhere from 5 to 20 percent to the cost of affected products, depending on the category and the stage of the supply chain.”
This applies to toys, too. Considering that The New York Times reported that roughly 80% of toys sold in the U.S. come from China, a country where there is currently a large tariff on goods, this has meant an increase in toy prices already. Mattel told The Wall Street Journal earlier this year that it would raise prices on some of its toys, and toy prices rose 2.2% between April and May this year.
“The biggest impact will be on toys, electronics, and products with a lot of plastic or components made overseas,” Ayoola says, referencing popular items like dolls, action figures, and tablets.
Holiday shopping strategies with tariffs in mind
Your holiday shopping budget may not go as far this year with the tariffs. If you’re able, Ayoola recommends budgeting an extra 10 percent or so for this year’s shopping to account for tariff impacts.
“Ayoola recommends budgeting an extra 10 percent or so for this year’s shopping to account for tariff impacts.”
But if that isn’t possible, here are some other ideas to consider for your shopping.
Consider experiences instead of toys
If you are looking for something that may not be impacted by tariffs, experience gifts like museum memberships, art or dance classes, and movie tickets are great options. You can still give your child a fun gift to unwrap. For an art class, wrap a paintbrush and a notebook or a new set of markers. Or for movie tickets, wrap a few of their favorite candies.
Some experiences you can even do with your child, which often is a gift in itself to get to spend special time with a parent.
Prioritize your holiday shopping list
Last year, my girls were pretty locked in on what they wanted Santa to bring. It was all about Elsa and ballet, and if I had been on top of my game, I could have shopped in September without fear that they’d change their mind.
This year, I think it will be different, as their tastes seem to be constantly evolving, but I’m trying to get a sense of what might really wow them. If I can understand one or two things that they would be overly thrilled to get, I might focus on prioritizing those items. And if it means that those eat up my budget, that will be OK.
Think about shopping early to avoid tariff impacts
“If tariffs are already in effect and retailers haven’t fully passed on the cost yet, buying early could save consumers money,” Ayoola explains. “Retailers often absorb some of the cost initially, but as inventory turns over, new stock at the higher tariff price will eventually hit shelves.”
If there is a particular toy your kid has been asking for for Christmas, it could be worth buying now. Save your receipt and note the return policy. You could always return it and buy it for a lower price.
Ayoola says that Black Friday and Cyber Monday will still be ways to get deals on toys and other holiday gifts. But she warns that the discounts may not be as deep this year, and that higher-demand toys could sell quickly.
“A helpful strategy may be to buy imported or high-demand gifts early,” Ayoola says, “then take advantage of Black Friday for smaller or domestic items less impacted by tariffs.”
Shop secondhand
Toys don’t have to be new for a kid to love them. My house doesn’t wrap gifts from Santa, so my kids never see the boxes things come in and wouldn’t know the difference.
Sources like Facebook Marketplace and Poshmark are great online resources to find great deals on gently used toys. Local consignment shops or sales can also be helpful for finding less expensive versions of a toy. In my city, there are two great consignment sales every September, so I always try to find at least some stocking stuffers.
Financial tips to maximize holiday shopping this year
One of the things that Ayoola, who is also a mom, is doing ahead of holiday shopping this year is putting money into a high yield savings account. You can earn over 4 percent interest with certain high-yield accounts, which will make your money go further.
She also says that things like cashback opportunities from using certain debit cards, credit card rewards, and just generally looking for the best deal can be helpful (as long as you’re paying off your balance to avoid interest charges).
Tariffs may have an impact on your budget and subsequent purchasing power this holiday season. If you can’t buy as many gifts as you’d like to, it’s OK. Remember that kids are more likely to remember the memories you make with them versus what gifts they got a particular year.
So focus on things like baking cookies together or watching your favorite holiday movie, and know that they’ll still have a magical season.
Elliot Harrell, Contributing Writer
Elliott is a mom of two little girls and is based in Raleigh, NC. She spends her days running a sales team and doing laundry and her nights writing about the things that she loves. She’s passionate about all things motherhood and women’s health. When she’s not working, writing or parenting you can find her trying a new restaurant in town or working on her latest needlepoint project.
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