British toymaker Character Group, known for its Peppa Pig and Fireman Sam lines, is facing continued uncertainty in the US market after halting shipments of Chinese-made products due to tariff concerns.
The company, which withdrew its financial targets for the year last month, cited both the tariffs and resulting consumer caution as factors impacting global sales.
Character Group paused US shipments in October following President Trump's announcement of increased tariffs on Chinese goods.
The tariffs, which initially rose to 145 per cent on some Chinese imports, were met with retaliatory tariffs from China on certain US goods, reaching as high as 125 per cent.
Earlier this week, President Trump subsequently announced a 90-day tariff reduction, bringing the rate down to 30 per cent.
Character said sales to the US amounted to around 20 per cent of group revenues last year, with “substantially all” of these being made in China.
It said the tariff reduction “gives hope for a negotiated resolution, although this remains uncertain at this time”.
The Surrey-based group said uncertainty linked to tariffs has been felt in other markets, as “customers have become increasingly cautious and are not committing to orders to our expectations”.
It said sales in all key territories have been impacted as a result.
However, the company said it still expects to be profitable for the current financial year as a whole.
It came as the company reported that group revenues dropped by 8 per cent to £53 million for the six months to February, compared with a year earlier.
The company saw pre-tax profits stay roughly flat at £2.1 million for the period despite weaker sales.
Shares were 3.5 per cent lower in early trading.
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