Barbie maker Mattel says it will put up the prices of some of its toys in the US as President Donald Trump’s tariffs increase its costs.
The firm also says it will cut the number of products it makes in China for the American market.
At the same time, car-making giant Ford says the levies will cost it about $1.5bn (£1.13bn) this year.
They join a growing list of big businesses warning about the impact of US tariffs on their companies and the wider economy.
“Given the volatile macroeconomic environment and evolving US tariff landscape, it is difficult to predict consumer spending, and Mattel’s US sales in the remainder of the year and holiday season,” Mattel said as it updated investors on its financial performance.
The US accounts for about half of Mattel’s global toy sales. It imports around 20% of its goods sold there from China.
The company said it plans to reduce those Chinese imports to the US to below 15% by next year.
Since returning to the White House in January, Trump has imposed new import taxes of up to 145% on goods from China.
His administration said last month that when the new tariffs are added on to existing ones, the levies on some Chinese goods could reach 245%.
China has hit back with a 125% tax on products from the US.
Apart from China, Mattel imports products – including Barbie dolls and Hot Wheels cars – from Indonesia, Malaysia and Thailand.
The three countries were also hit with steep tariffs by Trump in April, before they were paused for 90 days.
Last week, Trump acknowledged the potential impact of tariffs. American children might “have two dolls instead of 30 dolls”, he said, but added that China would suffer more than the US.
Carmaker Ford said it expected tariffs to add $2.5bn to its overall costs this year, mainly due to the increased expense of Mexican and Chinese imports.
But the firm said it had cut about $1bn of those added costs by taking various measures, including transporting vehicles from Mexico to Canada to avoid US tariffs.
The firm also suspended its annual earnings guidance to investors because of uncertainty around Trump’s trade policies.
In April, firms including technology giant Intel, footwear makers Adidas and Skechers, and consumer goods group Procter & Gamble detailed the impact of tariffs on their businesses.
“The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing,” Intel’s chief financial officer David Zinsner said during a call with investors.
Sportswear giant Adidas warned tariffs would lead to higher prices in the US for popular trainers, including the Gazelle and the Samba.
The finance chief of footwear firm Skechers, David Weinberg, told investors: “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success.”
And Procter & Gamble– which makes Ariel laundry detergent, Head & Shoulders shampoo and Gillette shaving products –said it was considering changes to its prices to make up for the extra cost of materials sourced from China and other places.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
