Mattel hikes toy prices in the US amid trump's tariff storm
Mattel, the producer of Barbie, has announced price increases for toys in the USA due to tariffs imposed by Donald Trump's administration, reports BBC News.
Mattel, a well-known toy manufacturer, has announced that it will raise prices for some of its products in the United States. This decision stems from increased costs resulting from tariffs imposed by President Donald Trump's administration. The company also plans to reduce its production footprint in China for the US market.
The tariffs imposed by the USA are affecting not only Mattel. Ford, the automotive giant, estimates that the tariffs will increase its costs by $1.5 billion this year. Many large companies are warning about the negative impact of tariffs on the economy.
Mattel imports about 20% of its products from China but plans to reduce this share to below 15% next year.
The Trump administration has imposed new tariffs on Chinese goods that can reach up to 245%. In response, China has imposed 125% tariffs on American products. Besides China, Mattel imports toys from Indonesia, Malaysia, and Thailand, which are also subject to tariffs.
President Trump has acknowledged that tariffs might affect consumers, suggesting that American children might end up with fewer toys. To minimize costs, Ford is moving vehicle transport from Mexico to Canada, thus avoiding tariffs.
Other companies affected by tariffs
Many companies, such as Intel, Adidas, and Procter & Gamble, are also feeling the effects of tariffs. Intel warns of a possible economic slowdown, and Adidas announces price increases for popular shoe models in the USA. Procter & Gamble is considering price changes for its products to offset the increased costs of materials.
