L.A.'s Oldest Toy Store Struggles to Stay Afloat Amid Soaring Tariffs

 

Kip’s Toyland, a beloved toy store in Los Angeles that has weathered nearly 80 years of change—from wars to recessions and even a pandemic—is now facing a new challenge: steep tariffs on

Chinese imports that could threaten its future.

With roughly 80% of toys sold in the U.S. made in China, the Biden administration's 145% tariff hike could prove devastating to small retailers like Kip’s.

“We’re getting warnings from suppliers—letters telling us to brace ourselves,” said Don Kipper, the store’s owner and son of founder Irvin “Kip” Kipper. Suppliers are advising retailers to bulk order before price increases take effect, something small stores like Kip’s can’t afford to do.

The toy industry, long dependent on China’s manufacturing infrastructure, is feeling the impact of ongoing U.S.-China trade tensions. Last year, the U.S. imported $13.4 billion in toys from China, a reliance built over 25 years due to lower labor costs and established production networks.

For Kipper, who sources most of his inventory from China, price hikes are inevitable—and he’s unsure how his shop will cope. “We can’t stockpile inventory or rent storage. We just don’t have the capacity,” he said.

Some suppliers have even halted production lines, putting this year’s holiday season at risk. “Nobody’s happy about this,” Kipper said, quoting letters from partners who regret the difficult decisions they’re being forced to make.

A Business Born from War

Kip’s Toyland was founded in 1945 by Irvin Kipper, a World War II pilot who was taken prisoner after his plane was shot down in Italy. Upon his liberation nearly a year later, he returned home determined to bring joy into the world. That fall, he opened a modest toy shop selling flags and dolls in Los Angeles.

“At the time, toys were mostly sold in hardware or department stores,” said Don Kipper. “There weren’t many standalone toy stores.”

One of the store’s first items was the Slinky, which remains on the shelves today and is still made in Pennsylvania—one of the few American-made toys Kip’s sells.

Over the years, however, the majority of U.S. toy production shifted to China. Many American toy companies shuttered or were absorbed by larger brands. While domestic production is possible, rebuilding infrastructure would take at least five years and still result in higher costs due to labor and regulations, according to toy analyst Chris Byrne.

A Classic Toy Haven in a Digital World

Despite the changes in manufacturing, Kip’s Toyland has remained true to its roots: no electronic gadgets, just classic toys that kids can touch and experience—puzzles, dolls, trucks, and more. It’s a tactile experience that’s becoming increasingly rare in the age of online shopping.

Families like Aeri Schwartz’s cherish that experience. She brings her toddler to Kip’s every few months. “It’s really special. There aren’t many places like this left in L.A.,” she said. But if a $20 toy suddenly costs $30, she admitted they’d have to cut back.

Another parent, Chelsea Kwoka, agreed. “We’d probably shift to buying experiences like zoo memberships or used toys from Facebook Marketplace,” she said. “It’s a rough time for everyone, and if I’m honest, buying less isn’t the worst outcome.”

Looking Ahead with Uncertainty

Kipper knows the months ahead could be tough. Still, he hopes there will always be parents needing a last-minute birthday gift. His plan? “Buy smart”—select cost-effective toys that families can still afford.

But if classic toys become significantly more expensive to import, Kip’s Toyland may be forced to raise prices—something Kipper sees as a last resort.

“It feels like a hostage situation,” he said. “But if we have to, we have to.” Photo by Lightyearsawayfromnow, Wikimedia commons.