Barbie maker warns of value hikes | EUROtoday

Barbie maker Mattel says it’s going to put up the costs of a few of its toys within the US as President Donald Trump’s tariffs improve its prices.

The agency additionally says it’s going to lower the variety of merchandise it makes in China for the American market.

At the identical time, automobile making large Ford says the levies will value it about $1.5bn (£1.13bn) this yr.

They be part of a rising record of huge companies warning concerning the impression of US tariffs on their corporations and the broader economic system.

“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 mentioned because it up to date traders on its monetary efficiency.

The US accounts for about half of Mattel’s international toy gross sales. It imports round 20% of its items bought there from China.

The firm mentioned it plans to cut back these Chinese imports to the US to beneath 15% by subsequent yr.

Since returning to the White House in January, Trump has imposed new import taxes of as much as 145% on items from China.

His administration mentioned final month that when the brand new tariffs are added on to current ones, the levies on some Chinese items may attain 245%.

China has hit again with a 125% tax on merchandise from the US.

Apart from China, Mattel imports merchandise – together with Barbie dolls and Hot Wheels vehicles – from Indonesia, Malaysia and Thailand.

The three nations have been additionally hit with steep tariffs by Trump in April, earlier than they have been paused for 90 days.

Last week, Trump acknowledged the potential impression of tariffs. American kids would possibly “have two dolls instead of 30 dolls”, he mentioned, however added that China would undergo greater than the US.

Carmaker Ford mentioned it anticipated tariffs so as to add $2.5bn to its general prices this yr, primarily because of the elevated expense of Mexican and Chinese imports.

But the agency mentioned it had lower about $1bn of these added prices by taking numerous measures, together with transporting autos from Mexico to Canada to keep away from US tariffs.

The agency additionally suspended its annual earnings steering to traders due to uncertainty round Trump’s commerce insurance policies.

In April, companies together with know-how large Intel, footwear makers Adidas and Skechers, and shopper items group Procter & Gamble detailed the impression of tariffs on their companies.

“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 monetary officer David Zinsner mentioned throughout a name with traders.

Sportswear large Adidas warned tariffs would result in increased costs within the US for standard trainers, together with the Gazelle and the Samba.

The finance chief of footwear agency Skechers, David Weinberg, advised traders: “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 merchandise – mentioned it was contemplating adjustments to its costs to make up for the additional value of supplies sourced from China and different locations.