I searched for 'toddler instruments' on Amazon.com and see a few options there...I'd probably be inclined to go with something like the Melissa and Doug "Band in a box" set that is $14.98
If you have a locally owned Toy Store or gift shop, you might be able to find Melissa and Doug stuff locally (and I've seen that brand in TJMaxx and Marshalls a lot), and Toys R Us or Babies R Us might even carry it.
I think that Fisher Price probably still makes those cute xylophones, too.
Is this your own child? If so, you've probably got more musical instruments floating around than you realize. 2 yos love to bang on the bottoms of cooking pots, boxes, etc. They like to blow into anything, so a $1 kazoo or a cheap plastic harmonica works well.
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