Mattel, the maker of Barbie, plans to increase the prices of some toys in the US due to rising costs from President Donald Trump’s tariffs. The company also intends to cut the number of products manufactured in China for the American market. Similarly, Ford estimates that tariffs will cost it approximately $1.5 billion this year. These companies join others warning about the effects of US tariffs on their businesses and the broader economy. Mattel stated that the volatile macroeconomic environment makes predicting consumer spending challenging. The US represents about half of Mattel’s global toy sales, with around 20% of its goods imported from China. Mattel aims to reduce these imports to below 15% by next year. Trump has imposed new import taxes of up to 145% on Chinese goods, with potential tariffs reaching 245%. China retaliated with a 125% tax on US products. Mattel imports from Indonesia, Malaysia, and Thailand, which faced steep tariffs in April but were paused for 90 days. Trump acknowledged the tariffs’ impact, noting that children might receive fewer toys, but claimed China would suffer more. Ford expects tariffs to add $2.5 billion to its costs, primarily due to increased expenses on Mexican and Chinese imports. The company has mitigated about $1 billion of these costs through measures like transporting vehicles from Mexico to Canada. Ford also suspended its annual earnings guidance due to uncertainty surrounding Trump’s trade policies. In April, companies like Intel, Adidas, Skechers, and Procter & Gamble highlighted tariff impacts on their businesses.
— new from BBC
