Barbie maker Mattel warns Trump tariffs might drive up costs | EUROtoday

Toy making large Mattel says it could improve its costs within the US to make up for the influence of tariffs imposed by Donald Trump.

It comes after the US President imposed 10% tariffs on all imports from China, the place just below 40% of the agency’s manufacturing relies.

On prime of potential worth will increase, the maker of Barbie and Hot Wheels says it may need to implement adjustments to its provide chain.

Consumer and enterprise teams within the US have warned that the tariffs might disrupt provide chains and result in increased costs.

“Guidance includes the anticipated impact of new US tariffs… announced on February 1st, and mitigating actions we plan to take, including leveraging the strength of our supply chain, and potential pricing,” Mattel stated in its quarterly report.

The toy trade has been going through slower gross sales in 2024, as a better value of residing meant consumers had much less money to spend on toys.

Despite this, Mattel’s shares jumped by 10% in prolonged buying and selling in New York, after the corporate forecast higher earnings for subsequent yr than had been anticipated by Wall Street analysts.

Over the weekend the pinnacle of International on the US Chamber of Commerce, John Murphy, stated Trump’s tariff plan will solely “raise prices for American families and upend supply chains”.

This week, the US president paused plans to impose a 25% tariff on imports from Canada and Mexico however went forward with levies on Chinese-made items.