President Donald Trump threatened to levy a 100 percent tariff on Mattel, the company that makes Barbies, following the firm CEO Ynon Kreiz’s announcement that the firm would continue to manufacture outside of the United States while reducing its reliance on Chinese imports.
“I’ve heard [Mattel] said: ‘Well we’re going to go counter, we’re going to try going someplace else,’” the US President stated in the Oval Office on Thursday. “That’s OK, let him go, and we’ll put a 100 percent tariff on his toys, and he won’t sell one toy in the United States, and that’s their biggest market.”
Trump’s warning against Mattel comes as toys, especially dolls, have become a hot topic about tariffs and the trade policies of his administration.
In order to guarantee adequate supply and reasonable prices come holiday season, a number of industry representatives have urged the government to grant an exemption, warning that their dependency on Chinese imports will cause toy prices to be especially affected by the current 145 percent rate on the nation.
Trump and his administration have downplayed the importance of the issue. The President has stated on multiple occasions that girls would be “better off” for having fewer dolls, and he is now threatening to place tariffs on one of the most famous doll producers in the world.
Trump made the remarks in reaction to a reporter’s inquiry about Mattel’s latest decision to increase its prices due to the tariffs. This comes after the US announcement about the UK deal that centered on autos and metals.
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Here’s what Barbie maker Mattel said
Earlier this month, Mattel noted the “changes in global trade policy and U.S. tariffs” and declared that it would be implementing “pricing action” in its US business.
During Mattel’s first-quarter earnings call, CEO Ynon Kreiz mentioned that the tariff-driven price surge was one of three “mitigating actions” the firm had been compelled to take in wake of the tariffs, along with a decrease in its reliance on goods sourced from China and a wider diversification of its supply chain.
In a Tuesday interview with CNBC, Kreiz was questioned if the tariffs would make it more cost-effective to move some manufacturing to the US. He said, “We don’t see that happening.:
“We believe that production in other countries—where we can be efficient and more productive—is the best balance between manufacturing outside of the U.S. and [continuing] to develop product in terms of design and creativity in America,” he stated.
In case the current scenario continues, Kreiz warned against significant possible chaos in the industry, stating that “80 percent of toy production globally happens in China. The Toy Association has stated that many companies are exposed to potential risks.”
“We support the Toy Association’s advocacy for zero tariffs on toys to ensure that safe and affordable products remain accessible to everyone,” he added.
