Exemptions On Baby Products ‘Under Consideration,’ Bessent Claims


Topline

Treasury Secretary Scott Bessent suggested Wednesday the Trump administration could exempt tariffs for baby products—though President Donald Trump was noncommittal about the idea—as reports suggest essential items for children like strollers and car seats face price hikes and possible shortages as a result of Trump’s sky-high tariffs on Chinese goods.

Key Facts

Tariff exemptions on “items that parents need for their babies” are “under consideration,” Bessent testified to the House Financial Services Committee on Wednesday, as he faced questioning from Rep. Ayanna Presley, D-Mass., about the tariffs’ impacts on American families.

Bessent did not specify which products could be exempted, or offer any further details about the Trump administration’s deliberations on possible exemptions.

Trump was then asked Wednesday about whether exemptions for baby products were possible, telling reporters, “I don’t know,” but adding he would “think about it” and “take a look at it.”

The president suggested he wasn’t thrilled about the idea, however, saying he wants to make his tariff policy “nice and simple” and is “not looking to have so many exemptions.”

More than 70% of baby gear sold in the U.S. is manufactured in China, according to data from the Juvenile Products Manufacturers Association (JPMA), with baby registry company Babylist noting that includes 97% of strollers and 87% of car seats.

Trump’s tariffs have wreaked havoc on the industry as a result, according to multiple reports, with companies already raising prices on their products and warning of shortages, which The Washington Post reports could start as soon as this month.

How Will Tariffs Affect Prices Of Baby Gear?

JPMA expects the price of baby products to broadly go up by roughly 30%, according to the Post. Those price hikes reflect the punishing tariffs the products face, as an April analysis by S&P Global found infant furniture faces tariffs on average of approximately 129%, while toys are tariffed at 113% and infant clothing imports are taxed at 41%. And prices are already starting to go up, according to Axios: Nuna raised the price of its strollers and car seats by $100 and $50, respectively, for instance, while the price of an UPPAbaby stroller is set to go up by hundreds of dollars—from $899 to $1,200—early this month.

Big Number

$20,384. That’s approximately how much parents can expect to spend on baby-related expenses in the first year of their child’s life, according to parenting resource BabyCenter. That study was published in February, prior to Trump’s “Liberation Day” tariff rollout, meaning it does not account for the additional price hikes from tariffs.

Surprising Fact

The Trump administration’s heavy tariffs impacting baby products run counter to its aims to boost the birth rate and encourage Americans to have more children. The White House has considered issuing $5,000 “baby bonuses” to American mothers after they give birth, multiple outlets reported in April, though no final plans have yet been announced.

Tangent

The discussion over baby gear comes as Trump has suggested he’s comfortable with children having to go without other goods, like dolls, in order to preserve his tariff agenda. “Well, maybe the children will have two dolls instead of 30 dolls, you know?” the president said during a Cabinet meeting last week. “And maybe the two dolls will cost a couple of bucks more than they would normally.”

Key Background

Trump’s tariffs have broadly sparked warnings from economists of higher costs for consumers and possible product shortages, as data suggests importers are canceling planned shipments from China. The president has long pushed tariffs as a cornerstone of his policy agenda despite criticism that imposing them could harm the economy, rolling out a suite of “Liberation Day” tariffs in early April that levied fees on imports from nearly all countries. While Trump went on to pause many of those tariffs for 90 days—keeping a 10% baseline rate but freezing higher rates—the president has only escalated his stance on China. He raised tariffs by an additional 125%, lifting the total tariff rate to at least 145% on Chinese imports, sparking a trade war with Beijing as it raised tariffs on American imports to 125% in response. Trump has shown a willingness to shield some goods from the tariffs and backtrack on his plans, however. His initial order exempted products like pharmaceuticals, and his administration then carved out an exemption for smartphones and other electronic goods after the tariffs had taken effect.

Further Reading

These U.S. Goods—From Oil To Cars—Could Face Price Hikes As Europe Reportedly Considers New Tariffs (Forbes)

Steve Madden Pulls Profit Projections—Joining These Companies Warning Of Tariff Impacts (Forbes)

Trump’s tariffs hit baby industry hard, threatening parents with price hikes, shortages (The Washington Post)

“Baby tax”: Trump tariffs send baby gear prices soaring (Axios)



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