El Segundo, California-based Mattel has announced that it will raise US toy prices due to increased tariffs on imports from China.
The tariffs imposed by the Trump administration aim to bring manufacturing back to the US by taxing goods from other countries. However, Mattel CEO Ynon Kreiz told CNBC that the strategy is unrealistic for his business.
“We need to remember that an important part of toy creation is happening in America,” Kreis said. “Design, development, product engineering and brand management are all done in the United States. Product manufacturing and product production in other countries allow us to create high-quality products at affordable prices.”
Mattel expects an additional $270 million tariff charge, primarily due to a 25% tariff on Chinese-made goods. As a result, Kreiz said the company plans to raise prices ahead of the holiday season to offset these costs.
The impact of tariffs extends beyond Mattel.
The Port of Los Angeles reports that half of shipments from China have arrived fully, leading to potential shortages and rising prices in stores. The port had expected 80 ships from China this month, but only 20% of them arrived.
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