US toy store owner says costs will skyrocket due to China tariffs

Toy stores are among the hardest hit by President Donald Trump's escalating trade war with China, with 77% of toys sold in the United States made in China, according to the Toy Association.

Amy Rutherford told ABC News at her store, Pippin Toy Co., in Alexandria, Virginia, that virtually everything in her store is made in China. Even the toys that are branded as "Made in USA" are actually made with parts in China, she said.

Rutherford pointed to a stuffed panda that costs $32 and said that with the 145% tariff, the panda could soon cost up to $80.

"If it's at an $80 panda from $32, then that makes a big difference," she said. "People aren't going to want to pay that.

While Rutherford noted that she would be able to absorb some of the increased costs, she "certainly can't absorb 145% -- that's not possible. Not even half of that is possible."

She noted that there's not enough toys made in America to fill her store with the variety she's currently selling.

A plastic bracelet in her store that is made in the U.S. has beads from China, and her store's wooden toy collection is made in the U.S., but Rutherford explained the metal bells and parts are from China.

Pippin Toy Co. purchases toys from vendors in the U.S. and around the world, and though a vendor may be based in the U.S., United Kingdom or Spain, she stressed the toys are still made in China.

She said her vendors are confused and uncertain -- some are telling her they're pausing shipments, while others have already started raising their prices.

Rutherford said she is trying to conserve her store's budget but is concerned that she may have to lay off workers in the future.

"If we see our margins shrink by just 2%, that's a person -- it's one of my team members," she said.

"We can't continue like this," Rutherford added. "You know, uncertainty is no way to run a business, and it's certainly no way to run a country."