Less than a week ago, President Trump suggested that children may have to do with fewer toys this year.
‘Well, maybe the children will have Two dolls instead of 30 dollsDo you know? “He said those two dolls” can cost a few dollars more than normal. “
On Monday, Mattel, the American toy company and the maker of Barbies, said it would increase prices for our toys because of Mr. Trump 145 percent Rates for input from China. Mattel, who produces 20 percent of his American goods there, said in his First quarter Presentation that aim is to reduce that to less than 15 percent by 2026. It also said that it would suspend its financial guidelines for the year, where uncertainty about trade and rate policy would be mentioned.
Factories In China, produce nearly 80 percent of all the toys that are sold in the United States. Several American toy companies have said they would probably increase prices because of the rates.
The Toy Association, an American industrial group that represents 850 toy manufacturers, warned that shortages were probably before Christmas. The study among 410 small companies that make toys showed that a majority said they had canceled orders, and about half said they run the risk of going bankrupt within a few weeks or months if the rates remained in place.
Mattel is one of the many companies that Blown financial predictions For this year, including General Motors, Snap and UPS, because of Mr. Trump’s economic policy. Mattel said that, given the “volatile macro -economic environment and the evolving American rate situation, it was too difficult to predict consumer spending and American sales for the year.”
Zach Warring, an analyst at CFRA Research, said that Mattel could isolate himself from rates by selling more of his Chinese goods outside the United States. Mattel can also protect his margins by increasing prices, but he wondered if American customers would be willing to pay more, or whether toys would be on shelves instead and ultimately needs to be taken into account.
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