Character Group, the London-listed manufacturer of Peppa Pig and Fireman Sam toys, has warned that trading with the US remains 'uncertain' after pausing shipments of Chinese-made goods due to Donald Trump’s tariffs. The company said on Friday it had halted shipments from China to the US in April following the White House’s announcement of steep levies on Chinese imports.
The decision has impacted its financial outlook, with Character Group withdrawing its guidance for the current financial year last month. Sales in the US, including its Heroes of Goo Jit Zu stretchy action figures, accounted for 20% of the group’s revenues in the year to 31 August 2024. The company noted that 'substantially all' of its US-bound products are manufactured in China.
The tariffs, part of an escalating trade war between the US and China, have led to 'volatile and evolving trade policy', according to the firm. Although a recent pause in the tariffs gave hope for a negotiated resolution, Character Group said uncertainty persists. The economic turmoil has also hit global sales, as customers become 'increasingly cautious' and reluctant to commit to orders.
Despite the challenges, the company expressed confidence it would remain profitable in the current financial year. The Toy Association, a US industry body, has campaigned for toys to be exempt from tariffs, describing them as 'essential for childhood development'. Retail sales of toys in the US generated over $28bn (£21bn) in 2024, according to Circana.
