New and old versions of the classic Barbie doll are on display at the Mattel Design Center in El Segundo, California on February 22, 2024.
Mario Anzuoni | Reuters
Mattel It may soon increase the price of toys like Barbie dolls and hot wheels New tariffs Imposed by President Donald Trump Executives say Tuesday.
The toy giant, which produces about 40% of toys in China and less than 10% in Mexico, told analysts it will hope to move around its supply chain to mitigate the impact of tariffs, But this is also considering price increases.
“Of course there are tariff violations, and we have taken a series of mitigation actions,” said Anthony Disilvestro, head of finance, during the fourth quarter revenue call for the company’s fiscal fiscal. He said that these actions include exploitation. Mattel’s supply chain and “potential price increase”.
“We do work closely with our retail partners to achieve the right balance and always keep consumers in mind when considering pricing actions,” he added.
Comments were posted after Trump imposed a 10% tariff on Chinese goods this week. He is too Suspend 25% of the program’s responsibilities Imported from Mexico and Canada for 30 days.
Economists on both sides of the aisle agreed that the levy could lead to Prices rise For consumers. There is no guarantee that Trump will impose tariffs on Mexico and Canada, as he often uses threats of duty as a negotiation strategy to bring foreign governments to his will.
Mattel’s hot-wheeled car is for sale at a large Chicago store on April 23, 2024.
Scott Olson | Getty Images
Shortly after Trump announced a 25% tariff on goods tariffs on Canada and Mexico, the two countries announced that they would strengthen security at their respective borders, resulting in Trump’s suspension of duty. Before Trump threatened, the two countries were already strengthening border security.
China and the United States have not reached a similar agreement to avoid tariffs. If 10% of the responsibilities remain in effect, it will have a significant impact on the toy industry, which comes from about 80% of the goods in the region.
Although companies like Mattel publicly stated that they plan to use their supply chains and work with suppliers to mitigate the impact of tariffs, executives privately admitted they are reluctant to bear costs and reduce profits themselves. If they can’t pass the full cost of the tariff to the supplier, there are some plans Make consumers pay Through price increases.
Some companies with diversified supply chains, such as Mattel, operate their own and third-party factories in seven different countries, have greater flexibility to transfer production and rely on suppliers to reduce the hit to profits. It also has about 40% of its operations outside North America, and tariffs outside North America are not imposed the same way as they do in the United States
By 2027, Mattel expects procurement from Mexico and China to account for more than 25% of total global production, down from 50% now. It is not currently sourced from Canada.
