The toys made by Mattel, Hasbro and others are seen in a Macy store in New York.
Staff | Reuters
There are problems in Toyland.
Toy giants Matel And Hasbro have seen their actions beaten by the growing trade war of President Donald Trump with China.
On Friday, Mattel’s shares reached a new intrajat hollow of 52 weeks of $ 13.95 each, down 27% since Trump announced his aggressive and large -scale reciprocal price last week. Rival Hasbro’s shares dropped 52 weeks of $ 49 on Wednesday, down more than 20% in the same period.
The toy industry strongly depends on the supply chains in China, leaving toy manufacturers at the mercy of commercial policy. Bank of America estimates that Mattel and Hasbro get around 40% of their American product from China.
The stocks of toys are beaten by the American-Chinese trade war.
Trump last week announced withdrawals of strong imports from dozens of countries, hitting China with one of the highest rate rates. On Wednesday, Trump lowered these prices for most countries at a coverage rate of 10%, except China, which he has even stronger.
The current American price on Chinese imports is 145%. China retaliated, imposing its own 125% sample on American goods.
The margins for toys are generally with high figures, which means that there is little room for maneuver so that companies absorb the cost of these new costs. Expectations are that toy companies will have to transmit the total cost of Trump prices to the consumer thanks to higher prices on the shelf.
These price increases, which could see a double toy product in cost, should coincide with this year’s back -to -school season.
– Tom Rotunno of CNBC contributed to this report.