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The toy firm Mattel could elevate US costs to offset the price of Donald Trump’s tariffs on items made in Mexico and China, its chief government has warned.
Ynon Kreiz advised the Monetary Instances that lower than 40 per cent of Mattel’s manufacturing was in China whereas Mexico accounted for lower than 10 per cent. The US president has imposed a further tariff of 10 per cent on Chinese language items and threatened tariffs of 25 per cent on imports from Mexico and Canada.
“We believe we are very well positioned to leverage the strength of our supply chain to mitigate for tariffs,” Kreiz stated as Mattel launched fourth-quarter and annual outcomes on Tuesday. “And we are also considering potential pricing actions to mitigate for the tariffs.”
Business and shopper items associations have urged the brand new administration to rethink tariffs, which Trump has stated are essential to counter flows of medicine and migrants illegally coming into the US.
However public firms have been reluctant to make concrete predictions over the results of tariffs, as they wrestle to maintain up with fast coverage adjustments or search to keep away from antagonising Washington.
California-based Mattel is among the world’s largest toymakers with merchandise together with Barbie dolls, Sizzling Wheels vehicles and the Uno card recreation. About half of its world gross sales combine is within the US, Kreiz stated.
The corporate on Tuesday reported internet gross sales of $1.6bn within the fourth quarter, up 2 per cent yr on yr and barely greater than a consensus estimate compiled by Seen Alpha. Internet revenue fell 4 per cent within the quarter to $141mn, extra that twice the revenue forecast.
Mattel shares rose by 9.5 per cent in after-hours buying and selling.
“Looking into 2025, we plan to grow both top and bottom line and this includes the tariffs that have just been announced,” Kreiz stated.
Mattel’s merchandise are made in seven international locations together with China, Indonesia, Malaysia, Mexico and Thailand. Kreiz stated the corporate’s share of manufacturing from China was lower than half the trade common.
The brand new tariff on China went into impact on Tuesday. Trump agreed on Monday to pause the tariffs on Mexico and Canada for 30 days following calls with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
In 2018, Mattel started to diversify its provide sources. By 2027, nobody nation will characterize greater than 25 per cent of its world manufacturing footprint, Kreiz stated.
