Barbie maker Mattel warns Trump tariffs could drive up costs

Toy making large Mattel says it could enhance its costs within the US to make up for the impression 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 is predicated.

On high of potential value will increase, the maker of Barbie and Sizzling Wheels says it may need to implement modifications to its provide chain.

Shopper and enterprise teams within the US have warned that the tariffs could disrupt provide chains and result in larger costs.

“Steering consists of the anticipated impression of latest US tariffs… introduced on February 1st, and mitigating actions we plan to take, together with leveraging the power of our provide chain, and potential pricing,” Mattel stated in its quarterly report.

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

Regardless of this, Mattel’s shares jumped by 10% in prolonged buying and selling in New York, after the corporate forecast higher earnings for subsequent 12 months than had been anticipated by Wall Road analysts.

Over the weekend the pinnacle of Worldwide on the US Chamber of Commerce, John Murphy, stated Trump’s tariff plan will solely “elevate costs for American households and upend provide 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 language-made items.