Barbie maker raises costs because of Trump price lists as Ford warns of $1.5bn price

Barbie maker Mattel has stated it’ll build up costs for some merchandise in the United States as Donald Trump’s sweeping price lists bump up prices for the toymaker.

The US represents about part of Mattel’s international toy gross sales, and the corporate imports about 20% of its items offered within the nation from China. Mattel stated it could cut back imports into the United States from China to underneath 15% by means of 2026.

“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,” the toymaker stated, because it withdrew its annual monetary goals.

The corporate stated it used to be “taking pricing action” in its US trade “where necessary” in keeping with the price lists.

Separately, the carmaker Ford stated the United States president’s price lists would price it about $1.5bn (£1.1bn) this yr.

The US automotive corporate expects price lists so as to add $2.5bn to its general prices this yr – in large part because of the expanding prices of imports from Mexico and Canada. But it plans to chop about $1bn of the ones prices via quite a lot of measures.

The US and China have hiked price lists on each and every different’s items to greater than 100% since Trump took place of work previous this yr, in a full-on business warfare between the arena’s two largest economies that has upended international provide chains.

“There’s no question that tariffs are creating disruption in the industry. Many companies have stopped production and shipping to the US as a result of tariffs from China. We do support the Toy Association’s advocacy for zero tariffs on toys,” the Mattel leader government, Ynon Kreiz, instructed Reuters.

The corporate used to be making adjustments to its provide chain to scale back China-sourced product in the United States. For example, it used to be ramping up manufacturing of the Uno card sport in India to serve the United States marketplace and lengthening go with the flow from China against world consumers, Kreiz stated.

Apart from China, Mattel imports merchandise comparable to Barbie dolls and Hot Wheels toys from Indonesia, Malaysia and Thailand, that have been additionally hit by means of reciprocal price lists from the Trump management in early April prior to being paused for 90 days.

Mattel expects about $270m in incremental prices from price lists this yr, starting within the July quarter, however mitigating movements are anticipated to totally offset the ones prices, the outgoing finance leader, Anthony DiSilvestro, stated on a post-earnings name.

“The toymaker is squarely in the crosshairs of Trump’s tariff war,” stated Zak Stambor, a senior analyst at Emarketer.

Mattel were focused on annual internet gross sales enlargement of 2% to 3%.

Reuters contributed to this document