Barbie maker warns of price hikes as tariffs increase costs
Summary
Toy manufacturer Mattel, who make Barbie, says it will raise the prices of some toys due to increased costs from tariffs levied by the U.S. government. In response to these increased costs, Mattel also plans to reduce the number of toys it manufactures in China for the U.S. market.Key Facts
- Mattel intends to increase the prices of some toys in the United States.
- This is due to the implementation of import taxes (also known as tariffs) by the U.S. government on goods from China.
- The U.S. market accounts for about half of Mattel's worldwide toy sales.
- Around 20% of the toys Mattel sells in the U.S. are imported from China.
- Mattel plans to reduce its toy imports from China to the U.S. to below 15% in the forthcoming year.
- Apart from China, Mattel also imports toys from Indonesia, Malaysia, and Thailand.
- These three countries also had tariffs placed on them by the U.S. government in April.
- Other businesses, such as car manufacturer Ford and sportswear company Adidas, have also expressed concern about the negative impact of tariffs on their operations.
- Both these companies have stated they expect the tariffs to increase their overall costs this year.
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