Toy store suppliers unable to fulfill Burlingame toy store's orders, citing Trump's tariffs
KPIX | CBS NEWS BAY AREA
[{'start': '0.240', 'end': '4.160', 'text': 'President Trump continues to defend his'}, {'start': '2.159', 'end': '6.240', 'text': 'tariffs against China, but admitted that'}, {'start': '4.160', 'end': '9.360', 'text': 'it could lead to some emptier store'}, {'start': '6.240', 'end': '12.000', 'text': 'shelves and higher prices, especially in'}, {'start': '9.360', 'end': '14.000', 'text': 'the toy aisle. Somebody said, "Oh, the'}, {'start': '12.000', 'end': '15.679', 'text': 'shelves are going to be open." Well,'}, {'start': '14.000', 'end': '18.640', 'text': 'maybe the children will have two dolls'}, {'start': '15.679', 'end': '20.160', 'text': 'instead of $30, you know, and maybe the'}, {'start': '18.640', 'end': '22.880', 'text': 'two dolls will cost a couple of bucks'}, {'start': '20.160', 'end': '25.039', 'text': 'more than they would normally. So, he'}, {'start': '22.880', 'end': '28.000', 'text': 'made those comments during a cabinet'}, {'start': '25.039', 'end': '30.480', 'text': 'meeting yesterday. China produces almost'}, {'start': '28.000', 'end': '33.040', 'text': '80% of toys that are sold right here in'}, {'start': '30.480', 'end': '34.960', 'text': 'the US. And this trade war is causing'}, {'start': '33.040', 'end': '37.040', 'text': 'some concerns in the toy industry at'}, {'start': '34.960', 'end': '38.800', 'text': "large. It's already trying to plan ahead"}, {'start': '37.040', 'end': '41.040', 'text': 'for the holidays, which is always a'}, {'start': '38.800', 'end': '43.760', 'text': 'thing. Now, all of this planning and'}, {'start': '41.040', 'end': '46.000', 'text': 'this concern includes a Peninsula toy'}, {'start': '43.760', 'end': '47.520', 'text': 'shop owner and his local supplier. Our'}, {'start': '46.000', 'end': '49.520', 'text': 'Max Darrow checked in with both'}, {'start': '47.520', 'end': '51.320', 'text': 'businesses who are slowly seeing their'}, {'start': '49.520', 'end': '53.399', 'text': 'inventories'}, {'start': '51.320', 'end': '55.840', 'text': 'dwindling.'}, {'start': '53.399', 'end': '58.079', 'text': 'His shelves may be stocked with'}, {'start': '55.840', 'end': '60.399', 'text': 'different toys and games for kids, but'}, {'start': '58.079', 'end': '63.840', 'text': 'the majority of what John Kranian sells'}, {'start': '60.399', 'end': '66.240', 'text': 'have one thing in common. 97% of the'}, {'start': '63.840', 'end': '68.479', 'text': 'toys that we sell in our store are made'}, {'start': '66.240', 'end': '70.479', 'text': "in China. He says that's been a constant"}, {'start': '68.479', 'end': '72.479', 'text': "for decades, about as long as he's run"}, {'start': '70.479', 'end': '74.840', 'text': 'his shop Nuts for Candy and Toys in'}, {'start': '72.479', 'end': '77.520', 'text': 'Berlingame. America the'}, {'start': '74.840', 'end': '79.479', 'text': 'Beautiful, made in China. But since the'}, {'start': '77.520', 'end': '83.080', 'text': "start of the year, he's dealt with a new"}, {'start': '79.479', 'end': '86.880', 'text': "constant uncertainty. It's unpredictable"}, {'start': '83.080', 'end': '90.240', 'text': "what what's going on with these tariffs."}, {'start': '86.880', 'end': '92.240', 'text': 'How do I do business without knowing'}, {'start': '90.240', 'end': '94.560', 'text': "what's going to happen tomorrow? And"}, {'start': '92.240', 'end': '96.880', 'text': 'that uncertainty traces upwards.'}, {'start': '94.560', 'end': '98.880', 'text': 'Kevanian says he routinely gets emails'}, {'start': '96.880', 'end': '100.720', 'text': "from his suppliers saying they're"}, {'start': '98.880', 'end': '102.880', 'text': "raising their prices, can't fulfill"}, {'start': '100.720', 'end': '104.840', 'text': "orders, or aren't even ordering new"}, {'start': '102.880', 'end': '108.000', 'text': 'products anymore, citing the Trump'}, {'start': '104.840', 'end': '110.159', 'text': "administration's 145% tariff on Chinese"}, {'start': '108.000', 'end': '112.240', 'text': "imports. I'm not going to order like I"}, {'start': '110.159', 'end': '114.720', 'text': "used to because I'm not willing to pay"}, {'start': '112.240', 'end': '116.560', 'text': 'the high prices. My concern is that I'}, {'start': '114.720', 'end': '119.040', 'text': 'will get stuck with the inventory and'}, {'start': '116.560', 'end': '121.360', 'text': 'the consumer will not buy it and I will'}, {'start': '119.040', 'end': '123.119', 'text': 'tie up my cash flow and that will hurt'}, {'start': '121.360', 'end': '125.360', 'text': 'me.'}, {'start': '123.119', 'end': '127.040', 'text': 'John Hansen is one of those suppliers.'}, {'start': '125.360', 'end': '128.959', 'text': 'Having empty shelves is not a regular'}, {'start': '127.040', 'end': '131.200', 'text': "thing around here. He's a puzzle game"}, {'start': '128.959', 'end': '135.760', 'text': 'and toy manufacturer and distributor.'}, {'start': '131.200', 'end': '138.319', 'text': 'Over here, we had some chest sets. He'}, {'start': '135.760', 'end': '140.959', 'text': 'sells to around 1,500 retailers from his'}, {'start': '138.319', 'end': '143.840', 'text': 'Petal Luma headquarters. Anywhere from'}, {'start': '140.959', 'end': '145.920', 'text': 'your mom and pop toy store on the corner'}, {'start': '143.840', 'end': '148.239', 'text': 'uh up to some major accounts as well. He'}, {'start': '145.920', 'end': '150.480', 'text': 'says around 75% of their sales are'}, {'start': '148.239', 'end': '152.800', 'text': 'products that come from China. We have a'}, {'start': '150.480', 'end': '154.800', 'text': 'lot of inventory at various stages of'}, {'start': '152.800', 'end': '157.440', 'text': 'either being ready or being made in'}, {'start': '154.800', 'end': '160.000', 'text': 'China that at this point is just sitting'}, {'start': '157.440', 'end': '161.599', 'text': 'there. Why is it just sitting there?'}, {'start': '160.000', 'end': '164.360', 'text': 'Well, because to ship it at this point,'}, {'start': '161.599', 'end': '167.599', 'text': 'it would be to pay the tariff at'}, {'start': '164.360', 'end': '169.680', 'text': '145%. Uh, it would no longer make sense'}, {'start': '167.599', 'end': '172.400', 'text': 'to sell for the next couple months.'}, {'start': '169.680', 'end': '174.239', 'text': "What's here is what we can sell. Hansen"}, {'start': '172.400', 'end': '177.040', 'text': "says on an average year, we're bringing"}, {'start': '174.239', 'end': '178.879', 'text': 'in 40 to 45 containers. So far this'}, {'start': '177.040', 'end': '181.360', 'text': "year, we've brought in two. From his"}, {'start': '178.879', 'end': '183.760', 'text': 'vantage point, this state of flux is'}, {'start': '181.360', 'end': '185.599', 'text': 'throwing the future out of balance. And'}, {'start': '183.760', 'end': '187.760', 'text': 'that includes looking towards the'}, {'start': '185.599', 'end': '190.640', 'text': 'holiday season. The uncertainty is the'}, {'start': '187.760', 'end': '192.560', 'text': "biggest thing. We can't go out and quote"}, {'start': '190.640', 'end': '195.040', 'text': 'our customers, especially the larger'}, {'start': '192.560', 'end': '197.200', 'text': "guys. We can't plan for fourth quarter"}, {'start': '195.040', 'end': '199.440', 'text': 'yet, uh, which we would normally be'}, {'start': '197.200', 'end': '201.920', 'text': 'doing right now. My concern is also for'}, {'start': '199.440', 'end': '205.440', 'text': 'a lot of my customers that are small'}, {'start': '201.920', 'end': '207.280', 'text': 'shops that rely on turning over product'}, {'start': '205.440', 'end': '209.519', 'text': 'regularly.'}, {'start': '207.280', 'end': '212.159', 'text': "Kranian buys Hansen's puzzles, which"}, {'start': '209.519', 'end': '214.799', 'text': "don't come from China. This product is"}, {'start': '212.159', 'end': '219.280', 'text': 'from Spain. However, this product used'}, {'start': '214.799', 'end': '221.519', 'text': "to have a 3% tariff. Today, it's at 20%."}, {'start': '219.280', 'end': '223.680', 'text': 'As of now, Kavanian says he has not'}, {'start': '221.519', 'end': '226.480', 'text': 'raised his prices. We are going to wait'}, {'start': '223.680', 'end': '228.799', 'text': 'and see what happens because we have'}, {'start': '226.480', 'end': '231.920', 'text': 'still four to 5 months worth of'}, {'start': '228.799', 'end': '234.879', 'text': 'inventory. In this time of uncertainty,'}, {'start': '231.920', 'end': '237.040', 'text': 'Kranian is certain the status quo is'}, {'start': '234.879', 'end': '240.480', 'text': 'unsustainable. And I believe if this'}, {'start': '237.040', 'end': '243.040', 'text': 'tariff continues on within the next four'}, {'start': '240.480', 'end': '245.599', 'text': 'to six months, you will see empty'}, {'start': '243.040', 'end': '248.159', 'text': 'shelves all over the country. He hopes'}, {'start': '245.599', 'end': '252.319', 'text': 'for a resolution soon before small'}, {'start': '248.159', 'end': '252.319', 'text': 'businesses start to call it quits.'}]