U.S.-China tariff swings expose supply-chain risks as Trump-Xi talks raise hopes for stability

U.S.-China tariff volatility nearly forced China-based toy maker Huntar Company to shut down in 2025, underscoring the supply-chain risks facing import-dependent U.S. retailers as President Donald Trump meets Chinese President Xi Jinping in Beijing during the week of May 13, 2026. Huntar, which employs 400 to 500 workers in Shaoguan and supplies educational toys to retailers including Walmart and Target, was preparing to move production molds to Vietnam when Washington and Beijing reached a trade truce in Geneva on May 12, 2025. The agreement rolled back triple-digit tariffs, allowing the company to recall the shipment before customs clearance. Analysts expect an extension of the tariff truce, citing China’s leverage in rare earths, which are critical to U.S. industry and defense. Capital Economics said the dispute reflects deeper tensions tied to China’s $1.2 trillion trade surplus and U.S. reliance on Chinese imports. China produces about 80% of toys bought by the U.S., according to The Toy Association.