A major toy supplier to American retailers is racing to cut ties with Chinese manufacturing due to Trump tariff concerns. The move signals a growing trend of companies repositioning their supply chains amid ongoing US-China trade tensions.
At a glance:
- MGA Entertainment, maker of Bratz and L.O.L. Surprise! dolls, is shifting production out of China
- The company plans to move 40% of manufacturing to India, Vietnam, and Indonesia
- The transition is expected to be completed within six months
- The decision comes in response to President Trump’s trade war with China
- This represents a broader trend of American companies reducing dependency on Chinese manufacturing
Trump’s Trade War Prompts Manufacturing Exodus
MGA Entertainment, one of America’s largest toy manufacturers, is accelerating plans to move production away from China in a direct response to the trade tensions established by President Donald Trump’s administration. The company currently produces its popular Bratz and L.O.L. Surprise! dolls primarily in Chinese factories, but that’s about to change.
The California-based toymaker has announced intentions to relocate 40% of its manufacturing operations to alternative Asian countries including India, Vietnam, and Indonesia. The strategic pivot comes as American businesses continue to grapple with the economic impact of tariffs implemented by Trump, who says he aims to address China’s unfair trade practices. The President insists that China operates in ways that cause immense harm to American workers. These include market-distortion and restrictive investment policies.
Six-Month Transition Plan Underway
MGA Entertainment’s rapid manufacturing shift is expected to be completed within an ambitious six-month timeframe. The company’s swift action provides an example of how American businesses are adapting to protect their supply chains and preserve competitive pricing for consumers.
This accelerated departure from Chinese manufacturing is a significant logistics challenge for the toy giant, which must maintain consistent product quality and timely deliveries to major retail partners including Walmart and Target. The company’s leadership clearly recognizes that reducing dependency on China is essential for long-term business stability in today’s geopolitical climate.
Industry analysts have noted that MGA’s move aligns with a broader trend of American companies seeking manufacturing alternatives to China.
Shifting Production Landscape in Asia
MGA Entertainment’s selection of India, Vietnam, and Indonesia as alternative manufacturing hubs follows a pattern established by other major American companies seeking to diversify their production footprint. These countries offer competitive labor costs and increasingly developed manufacturing infrastructure that can support complex supply chains.
This manufacturing migration is a vindication of President Trump’s strategy to reduce American economic dependency on China. The continued reshaping of global supply chains shows how policies implemented by the Trump administration are having lasting effects on how American companies approach international production and relationships.
