Toys, once affordable for American households, risk becoming luxuries as the US toy industry grapples with the fallout of steep 145 percent tariffs imposed on Chinese imports, according to a CNN report, "145% tariffs on China are clobbering the toy industry", released on Saturday.

It pointed out the drastic policy shift, initiated by the Trump administration, has plunged the sector into turmoil, sparking fears of business closures and soaring consumer prices.

China is the top source of foreign-produced toys sent to the US, producing 75 percent of toys sold in America - worth $13.4 billion (97.89 billion yuan) - last year, according to US Commerce Department data.

CNN quoted Isaac Larian, CEO of US toy manufacturer MGA Entertainment, as saying that the Trump administration's 145 percent tariffs on Chinese goods have forced the company to implement "high double-digit price increases", threatening the survival of his 46-year-old business.

Small businesses dominate the toy sector in the US.

"It's much easier for them to tap in to the existing infrastructure in China than to build factories in the US from scratch," said CNN citing Greg Ahearn, president and CEO of The Toy Association.

The press also quoted CEO of Basic Fun! Jay Foreman as saying that the situation is a crisis to the entire industry.