Build-A-Bear Workshop Inc. is bracing for fewer profits as its stuffed animals and other merchandise imported from China and Vietnam are expected to cost more amid the Trump administration’s trade war.
The teddy bear retailer told investors in its annual 10-K report Thursday that President Donald Trump’s tariffs on Chinese and Vietnamese goods pose a “significant risk to our business operations.” Trump has put levies of at least 145% on imports from China. Vietnam and other countries are seeing a 10% duty on their exports under Trump.
Build-A-Bear sourced 58% of its merchandise from China and 38% from Vietnam in 2024, the company said in its 10-K. More than 90% of its inventory came from China before 2020, according to Build-A-Bear.
The company is considering new pricing strategies, tariff exemption requests, and other steps to reduce risks from Trump’s actions, according to its 10-K. But Build-A-Bear’s efforts may fail to fully alleviate its tariff woes, the company said.
“The tariffs may lead to higher prices for our products, potentially reducing consumer demand and impacting our sales volume,” Build-A-Bear said in its filing.
A company spokesperson didn’t immediately respond to a request for comment.
Build-A-Bear joins other retailers that have warned investors about business risks from Trump’s tariffs.
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