The Canada Brief

Economy · 18 d ago

Container port of Yantian, Shenzhen, China

Gigel.atat · CC BY-SA 4.0 · Wikimedia Commons

Most of what Americans pay for a China-made toy never leaves the US

Factory's share of the US retail price

20 %

A Chinese factory gets about 20 per cent of a toy's US retail price: about US$6 on a US$30 toy, to cover materials, wages and its profit.

A cargo ship takes about 15 days from Shenzhen to the US west coast and 25 to 30 days to the east coast. This year's Christmas toys left China in August and September.

A US$30 toy, in US dollars

7.35 to make, ship and tariff 22.65 stays in the US

Making a US$30 toy, shipping it and paying the import tariff comes to about US$7.35. The remaining US$22.65, or 75.5 per cent, stays in the US with the toy company, the carriers and the retailer.

Few factories have left China: fewer than 10 per cent of the members of the Toys Manufacturers' Association of Hong Kong moved any production out, though average pay in Vietnam is about half of China's.