One of the tariff objectives of 145% of President Donald Trump against China is to bring manufacturing to America. But the chances are weak, at least with regard to toys.
“We do not see that happening,” Matel The CEO, Ynon Kreiz, said on Tuesday on “Squawk Box” from CNBC, less than a day after the company withdrew the annual financial objectives.
“We must remember that an important part of the creation of toys occurs in America,” he said. “The design, development, product engineering, brand management occurs in America. Product production, production of products in other countries, allows us to create quality products at affordable prices.”
Mattel has diversified its global manufacture for almost a decade in order to reduce its dependence on China. At the end of the year, less than 40% of Mattel’s product will come from the country. Kreiz noted that in two years, no country will represent more than 25% of Mattel’s supply.
The new and old versions of the classic Barbie dolls are exhibited at Mattel Design Center in El Segundo, California, on February 22, 2024.
Mario Anzuoni | Reuters
In the meantime, Mattel takes attenuating measures to fully compensate for the costs associated with the Trump trade war with China, in particular by increasing prices in the United States, while maintaining the cost of many low toys.
The company plans to keep between 40% and 50% of its products under $ 20, according to Roth Eric Handler analyst.
“This is something we are committed to doing,” said Kreiz. “To continue to create a quality product and find the right balance between prices and value at the service of the consumer.”
Since the prices were announced on April 2, Mattel’s shares have been down approximately 19%.