week of December 1st, 2025

How the Latest USTR Exclusion Decision Relates to Toys and Hobbies

1. What USTR Announced on November 26

The Office of the U.S. Trade Representative (USTR) has extended 178 existing China Section 301 exclusions tied to the long-running investigation into technology transfer and intellectual-property practices. These exclusions-originally set to expire on November 29, 2025-are now extended to November 10, 2026.

None of these items are toys, hobby products, or HTS 9503 goods.

But the announcement does matter for our industry.

2. Why This Decision Matters to the Toy & Hobby Sector

Although none of the 178 items come from our sector, the action demonstrates something important:

The Administration is actively using its Section 301 authority to adjust, extend, or relieve tariffs where the economic case is strong.

Toys and hobby products—including model railroading, R/C vehicles, and plastic model kits-already fall within the same Section 301 tariff system. That makes our industry fully eligible for the same type of targeted relief USTR just exercised.

In other words: If USTR can extend exclusions for sectors where tariffs no longer make sense, it can also create or extend exclusions for ours.

The relevance is conceptual: the tool is active, and our sector meets the criteria where relief is justified.

3. Our Sector’s Rationale for Relief 

The toy and hobby sector presents exactly the kind of rationale that fits targeted exclusion decisions:

• Low national-security leverage: Removing tariffs on toys does not weaken U.S. negotiating power.
• High consumer affordability impact: Families feel these costs directly, especially during the holidays.
• Heavy small-business footprint: Hobby shops,  distributors, and specialty manufacturers are among the most tariff-sensitive businesses.
• Clear STEM/education value: Model building, trains, and       R/C vehicles support engineering, robotics, and problem-solving skills.

4. How Section 301 Shows Up in Import Paperwork

Section 301 appears in U.S. import paperwork through Chapter 99 tariff codes listed directly above or alongside the product’s normal HTS number. The key identifiers are:

• 9903.01.24
• 9903.01.25

These codes trigger the additional China-specific Section 301 duties on top of the standard tariff classification. Their presence confirms that toy and hobby imports are currently being charged under the Section 301 system—the same framework USTR is adjusting for other sectors.

5. What Comes Next

The Hobby Industry Coalition will continue engaging with the Administration and USTR to emphasize:

• the affordability consequences for families,
• the small-business exposure across the industry,
• and the low-leverage nature of tariff pressure in oursector.

The November 26 announcement reinforces that targeted, practical exclusions remain available, and the toy and hobby sector has a clear, credible rationale for relief. 

As the U.S. Chamber of Commerce recently noted, tariffs have been "causing irreparable damage to businesses large and small across the United States"-a reminder that the challenges facing our sector are part of a broader national impact felt by families, retailers, and manufacturers alike.

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