STANSSTAD, Switzerland, Nov. 7, 2025 /PRNewswire/ — In 2025, soaring tariffs have plunged the global toy industry into a period of significant uncertainty.
In an interview with Forbes, Peter Handstein, Founder and CEO of Hape Group, described the sector as facing an unprecedented challenge. Despite anticipating potential non-profitability in 2025 and even 2026, Hape has chosen to absorb a portion of the cost pressures, optimize its supply chain, and maintain stable product quantity and quality—thereby upholding its commitment to global consumers.
Peter Handstein
The core challenge is the U.S. tariffs on Chinese-made toys, which have surged as high as 145%. With approximately 80% of toys sold in the U.S. originating from China, the deeply interconnected supply chain has forced the entire industry to grapple with rising costs. As Handstein noted, “Unpredictability best describes our shared reality—this period truly feels like a rollercoaster ride”.
In the face of external pressures, Hape has demonstrated operational flexibility and resilience through concrete strategic actions:
Supply Chain Pre-positioning: Ahead of anticipated tariff increases, Hape strategically pre-stocked goods in warehouses in Canada. This move enabled rapid replenishment for the critical U.S. holiday season, ensuring supply chain continuity.
Cost Absorption: To maintain partnerships and market stability, the company voluntarily absorbed a portion of the cost increases resulting from tariffs, alleviating pressure on both partners and end consumers.
Long-term Commitment: This approach is rooted in a customer-centric, long-term philosophy. As founder Peter Handstein stated, “I need my clients, so I will do whatever I can to support them. I believe we will overcome the current challenges together”.
Peter talks with some business partners
This resilience is underpinned by Hape’s solid global foundations. As an international brand operating in nearly 100 countries and maintaining partnerships with major retailers, such as Amazon, Target and Walmart, Hape possesses strong inherent risk resistance. Furthermore, its products have received multiple international awards—such as the Nuremberg International Toy Award and Germany’s Golden Rocking Horse—proving its innovation and value are widely recognized.
Beyond commerce, Hape is committed to promoting the educational value of toys through global philanthropic initiatives and market activities, striving to provide high-quality, educational toys that bring innovative learning experiences to children.
Despite ongoing challenges, Hape remains confident that focusing on product innovation and educational essence will guide the industry forward. The company continues to collaborate with global partners to ensure children worldwide can enjoy the joy and inspiration brought by its toys.
