US President Donald Trump has targeted an American company in the trade war: toy maker Mattel, the manufacturer of Barbie, Hot Wheels, UNO, and American Girl, as per a report.
Speaking from the Oval Office, Trump threatened to impose a 100% tariff on Mattel's toys after the company said it had no intentions to move its production to the United States and even mentioned that it would diversify its production to other countries, according to the Independent.
The CEO explained that even with tariffs, it is very expensive to produce affordable toys in the United States for even the American consumer, according to the report.
Currently, about 20% of Mattel's imports are from China, however, Kreiz indicated that the company is already in the process of reducing that figure to 15% next year, and ultimately to less than 10% by 2027, according to the report. As part of that process, Mattel will relocate the production of 500 of its toys from China to other nations like India, reported Independent.
However, in the previous week, Trump did mention that his tariffs could lead to higher prices or less inventory, saying, “Well, maybe the children will have two dolls instead of 30 dolls,” and pointed out that those two dolls could “cost a couple of bucks more than they would normally,” as quoted in the report.
Trump threatened Mattel because it said it wouldn’t move toy manufacturing to the United States, even though tariffs would be imposed on other countries.
Is Mattel moving production out of China?
Yes, they’re reducing reliance on China, from 20% now to less than 10% by 2027, and shifting some production to countries like India, as per the Independent report.
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Mattel Refuses US Production Move
His harsh remark came after Mattel CEO Ynon Kreiz told during a CNBC interview that relocating toy manufacturing to the United States wasn't financially feasible, even with Trump's tariffs on other countries, as per the report. Mattel will instead distribute its production across other nations, such as India, or might just raise prices on US consumers, reported Independent.The CEO explained that even with tariffs, it is very expensive to produce affordable toys in the United States for even the American consumer, according to the report.
A Costly Choice
Kreiz shared that a “significant portion” of toy creation takes place in the US, like design, development, product engineering and brand management, but mentioned that most of the actual production is offshore to create a “quality” and “affordable” product, reported Independent.Currently, about 20% of Mattel's imports are from China, however, Kreiz indicated that the company is already in the process of reducing that figure to 15% next year, and ultimately to less than 10% by 2027, according to the report. As part of that process, Mattel will relocate the production of 500 of its toys from China to other nations like India, reported Independent.
Donald Trump Responds with Tariff Threat
While, the US president responded by saying, “That’s ok. Let him go, and we’ll put a 100 percent tariff on his toy, and he won’t sell one toy in the United States, and that’s their biggest market,” quoted the Independent.However, in the previous week, Trump did mention that his tariffs could lead to higher prices or less inventory, saying, “Well, maybe the children will have two dolls instead of 30 dolls,” and pointed out that those two dolls could “cost a couple of bucks more than they would normally,” as quoted in the report.
FAQs
Why is Trump threatening Mattel?Trump threatened Mattel because it said it wouldn’t move toy manufacturing to the United States, even though tariffs would be imposed on other countries.
Is Mattel moving production out of China?
Yes, they’re reducing reliance on China, from 20% now to less than 10% by 2027, and shifting some production to countries like India, as per the Independent report.
