Portland Toy Shops Struggle as Overseas Tariffs Disrupt Supply Chains

Although tariffs have paused for many countries, their effects are still being felt by small businesses across the U.S.—including toy shops in Portland, Oregon that rely on goods from China and other overseas manufacturers.

One such business is Mercy Milo, a boutique toy store named after the Rodriguez family’s daughter and inspired by the curated charm of Parisian shops. “We carry toys from all over the world—heirloom toys, wooden toys, retro toys,” said owner Caroline Rodriguez. “A good quarter of them come from China.”

One beloved brand, Schylling, is among those at risk. “We’re worried. A few vendors have already stopped sending inventory, saying it’s cheaper to skip retailers entirely,” Rodriguez said. The impact? Fewer unique, quality toys for her customers—and fewer options for her store.

U.S.-made toys, she says, are not only limited but significantly more expensive. Many domestic suppliers have already shifted to overseas production, a trend industry analysts say is unlikely to reverse. “The capital investment needed to produce $5 toys just isn’t there,” one analyst noted. “Manufacturing in the U.S. is being prioritized for electronics, not toys.”

Meanwhile, Rogue Toys in southeast Portland is shifting its business model, leaning into vintage toys after receiving vendor notifications about rising prices. “We’re a very small business,” said owner Mike Harsona. “We can’t just pass those extra costs onto our customers.”

Harsona also voiced concerns about products already paid for but stuck in transit due to tariff-related delays. “We don’t know if a $15 toy is suddenly going to cost us $30. At some point, we have to decide—do we eat that cost?”

While former President Donald Trump stated that the tariffs would benefit the U.S. economy in the long run, some small retailers aren’t so sure they can wait it out. “If this continues,” said Rodriguez, “we’re possibly looking at closing in a year or two. I just don’t see a future in retail under these conditions.”

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