Raising kids is costly; Tariffs will make it even more expensive

Summary

Consider This from NPR: Raising Kids is Costly; Tariffs Will Make It Even More Expensive
Release Date: April 17, 2025

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Overview

In the April 17, 2025 episode of NPR's "Consider This," host Mary Louise Kelly delves into the escalating costs of raising children in the United States and examines how recent tariff policies under the Trump administration are exacerbating these expenses. The episode features an in-depth conversation with Stephen Dunn, CEO of Munchkin Inc., a prominent American company that manufactures juvenile and maternal products. Dunn articulates the dire consequences that high tariffs are having on his business, the broader industry, and American families.

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Rising Costs of Parenting

Mary Louise Kelly opens the discussion by highlighting the substantial financial burden of raising a child. Referencing the 2017 U.S. Department of Agriculture’s estimate, she explains that a middle-income, two-parent family with two children spent approximately $14,000 annually to raise one child born in 2015. Adjusted for inflation, this figure balloons to nearly $320,000 over 17 years. These costs encompass essential categories such as childcare, healthcare, education, and basic necessities like food and clothing.

Key Quote:
"Raising a kid to adulthood could cost a middle-class family close to $320,000." — Mary Louise Kelly [00:01]

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Impact of Tariffs on Juvenile Products

The conversation shifts to the impact of the Trump administration's tariff policy, particularly the staggering 145% tariffs imposed on Chinese goods. Mary Louise Kelly introduces Stephen Dunn, CEO of Munchkin Inc., who provides firsthand insight into how these tariffs are crippling his business.

Key Quote:
"Our whole industry has stopped ordering products from China due to the 145% tariffs." — Stephen Dunn [01:21]

Dunn explains that the exorbitant tariffs have made importing essential juvenile products like strollers, baby gates, and breast pumps financially unfeasible. Consequently, companies like Munchkin Inc. are halting orders, leading to inventory shortages and the potential discontinuation of vital products in retail stores.

Key Quote:
"Parents will not find important juvenile products on the shelf soon." — Stephen Dunn [04:10]

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Consequences for Businesses and Families

Dunn elaborates on the domino effect of these tariffs, emphasizing that the increased costs cannot be absorbed by passing them onto consumers. With birth rates in the U.S. at their lowest in four decades, higher costs are likely to further discourage family growth, compounding economic and social challenges.

Key Quote:
"Making it more difficult and more expensive to be parents is going to even exacerbate that issue now." — Stephen Dunn [04:31]

He warns of imminent repercussions, including layoffs and the potential closure of businesses within the juvenile industry due to the unsustainable financial strain caused by the tariffs.

Key Quote:
"We will run out of inventory in the next 60 days." — Stephen Dunn [05:24]

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Challenges of Onshoring Production

Mary Louise Kelly probes into the potential justification for tariffs—revitalizing American manufacturing. Dunn acknowledges the administration’s intent to bring strategic industries like semiconductors and aerospace back to the U.S. However, he asserts that the juvenile products sector lacks the necessary infrastructure and financial capacity to relocate production domestically without substantial government support.

Key Quote:
"There is not this manufacturing base that is suddenly going to appear in the US that can mold over a hundred, you know, thousands and thousands of low margin products." — Stephen Dunn [06:50]

Dunn emphasizes the impracticality of onshoring for his industry, citing the absence of automation, skilled labor, and the significant investment required to establish manufacturing capabilities in the U.S.

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Call for Government Intervention

Dunn expresses frustration over the lack of response from the government despite reaching out through letters and communications. He is part of the Juvenile Products Manufacturing Association, which is advocating for exemptions or carve-outs for the juvenile industry to mitigate the adverse effects of the tariffs.

Key Quote:
"If action is not taken soon, the damage will be irreversible, not only for our company, our employees, but countless businesses, workers, and families across America." — Stephen Dunn [05:01]

He underscores the urgent need for strategic negotiations and government-supported initiatives to prevent a cascading failure across the market, which would leave both businesses and consumers in a precarious position.

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Final Thoughts

Stephen Dunn concludes by reaffirming his commitment to supporting American families and his employees. He underscores the broader implications of the tariffs, highlighting that without government intervention, the juvenile products industry—and by extension, American families—faces significant hardship.

Key Quote:
"We've done everything right. We've innovated, we've brought in wonderful safe products and it's impossible to bring this onshore in the time frame that is without the government support by setting up infrastructure." — Stephen Dunn [08:06]

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Conclusion

This episode of "Consider This" provides a compelling analysis of how tariff policies are not just abstract economic measures but have tangible, immediate effects on everyday American families and the businesses that serve them. Through Stephen Dunn’s testimony, listeners gain a deeper understanding of the interconnectedness of trade policies, business viability, and the socio-economic fabric of family life in the United States.

For more insights and detailed analyses of major news stories, tune into NPR’s "Consider This," available six days a week.

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Produced by Briana Scott, with audio engineering by Tiffany Vera Castro, Ted Mebane, and Simon Laszlo Jansen. Edited by Courtney DORNING and Eric McDaniel. Executive Producer: Sami Yenigun.

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Notable Quotes:

• "Raising a kid to adulthood could cost a middle-class family close to $320,000." — Mary Louise Kelly [00:01]

• "Our whole industry has stopped ordering products from China due to the 145% tariffs." — Stephen Dunn [01:21]

• "Parents will not find important juvenile products on the shelf soon." — Stephen Dunn [04:10]

• "Making it more difficult and more expensive to be parents is going to even exacerbate that issue now." — Stephen Dunn [04:31]

• "We will run out of inventory in the next 60 days." — Stephen Dunn [05:24]

• "There is not this manufacturing base that is suddenly going to appear in the US that can mold over a hundred, you know, thousands and thousands of low margin products." — Stephen Dunn [06:50]

• "If action is not taken soon, the damage will be irreversible, not only for our company, our employees, but countless businesses, workers, and families across America." — Stephen Dunn [05:01]

• "We've done everything right. We've innovated, we've brought in wonderful safe products and it's impossible to bring this onshore in the time frame that is without the government support by setting up infrastructure." — Stephen Dunn [08:06]

Transcript

[Mary Louise Kelly]

When it comes to the cost of raising a child from infancy to the age of 17 in the United States, it's hard to settle on a precise figure. There's one thing we do know, it's going to be expensive. In 2017, the US Department of Agriculture's Food and Nutrition Service put out a number. It estimated that a middle income two parent family with two children could expect to spend close to $14,000 per year to to raise one child born in 2015. Now add that up over the course of 17 years and you are north of $233,000. Again, those figures are from 2015. Adjust for inflation and raising a kid to adulthood could cost a middle class family close to $320,000. That money goes to childcare, health care, food, clothes, education, transportation, activities, toys, and a and all of those things will be affected one way or another by the Trump administration's tariff policy. Meaning if these tariffs stick around a while, the cost of raising a child in the US Just got even more expensive. And for the companies that sell products geared at raising those kids, they're going to fill the pinch as well.

[Stephen Dunn]

Our whole industry has stopped ordering products from China due to the 145% tariffs.

[Mary Louise Kelly]

That is Stephen Dunn, CEO of Munchkin Inc. A US based company selling juvenile and maternal products. Think sippy cups, bath toys, breast pumps. So consider this, being a parent in the US Is already expensive. Slapping tariffs on the products kids use could make it more so. From npr, Mary I'm Mary Louise Kelly.

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[Mary Louise Kelly]

It's Consider this from npr. Stephen Dunn describes himself As a businessman and an advocate for families, Dunn's company has about 300 employees. It makes products you can find just about anywhere. And he says the tariffs are hurting both his business and families. In an open letter to President Trump and to Congress, Dunn writes that the new tariffs are forcing his company to halt orders, cut jobs, and possibly run out of its products. Briefly outline for me why tariffs pose such a threat to your company.

[Stephen Dunn]

Well, when initial tariffs were implemented, the first there was 10% and then there was another 10%. Most of the companies within the juvenile industry tried to absorb them. Now that the tariffs have increased to 145% on China.

[Mary Louise Kelly]

Yeah.

[Stephen Dunn]

Businesses have just stopped ordering. And consumers, parents will not find important juveniles denial products on the shelf soon.

[Mary Louise Kelly]

I'm just trying to get a picture in my head of what you're talking about. You're talking about products like strollers, products like baby gates, and you're saying you cannot keep making them if the current situation persists.

[Stephen Dunn]

60% of freight, container or shippers have been canceled. Our whole industry has stopped ordering products from China due to the 145% tariffs. These are tariffs that just can't be passed on to parents. Parents. Our birth rates are at the lowest levels in the last 40 years. And making it more difficult and more expensive to be parents is going to even exasperate that issue now.

[Mary Louise Kelly]

Yeah. Stay with that point for a second because in this open letter you write, and I'm quoting, if action is not taken soon, the damage will be irreversible, not only for our company, our employees, but countless businesses, workers and families across America. What is the damage you see being done to American families, the products they rely on?

[Stephen Dunn]

Munchkin operates in about 12 different categories. Things from bottle brushes to bottles to a new product we launched that helps moms meet their breastfeeding goals. These products will not be on the shelves because our industry and millions of small businesses have simply stopped ordering. We will run out of inventory in the next 60 days.

[Mary Louise Kelly]

60 days.

[Stephen Dunn]

606 0. And if we don't place orders now, an order we place now will take 45 days to get here. So we're at a critical path where Munchkin owns thousands of tools in China. I can't even move my tools to the US I can't get an export license to move used tools. So moving and trying to relocate businesses like the juvenile industry or the maternal health industry into the US Takes years and years. It would take government supported programs to create manufacturing zones just to manufacture our sippy cups. Would take 100 molding machines in the US if we could find them.

[Mary Louise Kelly]

If President Trump were on the line with us now, he might be arguing, hey, tariffs are going to bring manufacturing back to the United States. This is good for America. This is good for American workers. What do you say to that?

[Stephen Dunn]

Well, I would say I wholeheartedly support the intent of onshoring strategic industries like semiconductors, pharmaceuticals and aerospace. But with respect to the juvenile industry and products that parents need every day, our industry is not made up of apples. We don't have $100 billion sitting in the bank. We have no ability. And there is not this manufacturing, manufacturing base that is suddenly going to appear in the US that can mold over a hundred, you know, thousands and thousands of low margin products. We don't have the automation, we don't have the skilled labor. So our industry is going to have layoffs. Our company has had a hiring freeze. We're not innovating. We can't find countries that don't have tariffs right now that make these products affordable for the American public.

[Mary Louise Kelly]

You founded Munchkin in 1991, 33, 34 years ago. Yes. For someone listening to us skeptically, who might wonder, hey, is this guy really worried about American families? Is he really worried about his workers or is he worried about his company's bottom line? What would you say?

[Stephen Dunn]

Well, I would say for 34 years we've made really safe and innovative products. Our goal has always been support parents. Am I worried about our 300 loyal, incredible employees? Absolutely. But I am speaking on behalf of all the other small and medium sized businesses in the same country. We've done everything right. We've innovated, we've brought in wonderful safe products and it's impossible to bring this onshore in the time frame that the and without the government support by setting up infrastructure.

[Mary Louise Kelly]

Are you in conversation with other small medium sized business owners about a path forward?

[Stephen Dunn]

We're part of the Juvenile Products Manufacturing Association. I've talked with their general counsel. They're also petitioning the administration to look at an exemption or a carve out for the juvenile industry due to the importance of supporting parents. What I've in talking with other CEO and leaders, everyone that I've talked to has stopped 100% their orders coming in from China. At 145% products will just be too expensive and the consumers will not be able to pay for them.

[Mary Louise Kelly]

Have you heard back from anyone in government?

[Stephen Dunn]

I have not. We fedexed, we've emailed and I know the administration is working on very strategic negotiations with other countries. But the small business leaders, small businesses throughout the U.S. you know, we're on a ticking time bomb. Everyone has stopped ordering, and we're going to run out of inventory. There will be layoffs within our industry, and there'll be companies that will go out of business.

[Mary Louise Kelly]

That was Stephen Dunn, founder and CEO of Munchkin. This episode was produced by Briana Scott with audio engineering by Tiffany Vera Castro, Ted Mebane and Simon Laszlo Jansen. It was edited by Courtney DORNING and Eric McDaniel. Our executive producer is Sami Yenigun. It's Consider this from npr. I'm Mary Louise Kelly.

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[Stephen Dunn]

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[Mary Louise Kelly]

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