05/07/2025
Tariffs threaten model railroading as industry group seeks relief
Specialty retailers most at risk as Hobby Industry Coalition launches effort
John Paul Hampstead
Tuesday, May 06, 2025
The model railroad industry, along with other hobby sectors, faces an existential crisis as Trump administration tariffs of up to 145% on Chinese imports dramatically increase costs for manufacturers, retailers and consumers. In response, the Hobby Industry Coalition launched a national campaign Monday seeking targeted tariff relief to protect American small businesses and the creative industries they support.
The coalition, which represents a broad spectrum of the U.S. toy and hobby industry, highlights the potentially severe unintended consequences of current trade policies on low-risk consumer products that pose no national security concerns. Model railroading, a hobby enjoyed by millions of Americans, is particularly vulnerable as manufacturers rely heavily on overseas production for components and finished products.
“The toy and hobby industry — a vital source of learning, creativity, and community — is facing collapse,” warns the coalition in its position paper titled “Trade Policy at a Crossroads: Safeguarding the Toy & Hobby Industry.” The document outlines how tariffs imposed under Section 301, the International Emergency Economic Powers Act, and actions related to stopping the flow of fentanyl into the U.S. have created an untenable situation for the industry.
Economic analysts note that the hobby industry’s contribution to the U.S. economy extends far beyond recreational enjoyment. The sector supports over 600,000 American jobs and encompasses thousands of small and family-run businesses across the country. Many of these businesses operate on thin margins and lack the scale to absorb massive price increases or quickly relocate manufacturing operations.
“We’re offering a policy solution that respects enforcement goals while correcting unintended harm,” said Stacey Walthers Naffah, CEO and president of Wm. K. Walthers Inc., a leading model railroad distributor. “This is practical, precedent-based, and pro-small business. If we are to imagine a robust domestic manufacturing base and healthy, happy American communities, we stand ready to train future engineers and provide fulfillment and enjoyment that our hobbies provide to all.”
The coalition emphasizes that it is not seeking a complete repeal of tariffs but rather targeted refinements. Its proposed approach includes reinstating past exclusion processes, creating a transparent review mechanism and ensuring critical educational tools remain accessible to Americans.
Industry representatives stress the educational value of hobbies like model railroading, which teach skills in electronics, engineering, artistic design and historical research. These activities often serve as gateways to STEM careers and provide creative outlets that contribute to community building and mental well-being.
The Hobby Industry Coalition has launched a comprehensive website that includes resources for advocacy efforts. The site features a Take Action center for contacting elected officials, a public petition for fair trade, a daily tariff tracker documenting the impact on prices and a storefront toolkit to help retailers navigate the challenging economic landscape.
The coalition describes itself as nonpartisan and open to companies, organizations and institutions that share its foundational principles of supporting the U.S. toy and hobby industry.
For many hobby shops and manufacturers, the issue has reached a critical point. Without relief, industry experts predict widespread closures among specialty retailers and potential discontinuation of product lines that have been staples of the hobby landscape for decades.
