Mattel increases toy prices as tariffs hit US market
Mattel, the manufacturer of Barbie, has announced price increases for its toys in the USA due to tariffs imposed by Donald Trump's administration, reports BBC News.
Mattel, the renowned toy manufacturer, has declared that it will raise prices on some of its products in the United States. This decision is a response to increased costs resulting from tariffs introduced by President Donald Trump's administration. The company also intends to reduce production in China for the US market.
The tariffs imposed by the USA are affecting not only Mattel. Ford, the automotive giant, estimates that these tariffs will raise its costs by $1.5 billion (€1.3 billion) this year. Many large companies are warning about the negative impact of tariffs on the economy.
Mattel currently imports about 20% of its products from China, but it plans to reduce this percentage to below 15% next year.
The Trump administration has implemented new tariffs on goods from China, with rates reaching up to 245%. In retaliation, China has imposed tariffs of 125% on American products. Apart from China, Mattel also imports toys from Indonesia, Malaysia, and Thailand, which have also been affected by the tariffs.
President Trump has acknowledged that tariffs might affect consumers, suggesting that American children could end up with fewer toys. Ford, in an effort to minimise costs, is shifting vehicle transport from Mexico to Canada, thereby avoiding tariffs.
Other companies affected by tariffs
Many companies, such as Intel, Adidas, and Procter & Gamble, are also feeling the impact of tariffs. Intel warns of a potential economic slowdown, while Adidas is announcing price increases for popular shoe models in the USA. Procter & Gamble is considering adjusting prices to offset increased material costs.
