Written by One of the goals of the current U.S. administration is to drive back manufacturing to the United States with the use of import taxes known as tariffs.
However, when it comes to the toy industry, that may never happen (according to Mattel.)
Mattel’s stock has taken a blow since the U.S. Tariffs were announced on the 2nd of April. In response to that stock dropping approximately 19%, Mattel CEO Ynon Kreiz spoke with CNBC in regards to Mattel’s path forward through these tumultuous times.
While Mattel plans on reducing their toy manufacturing in China from 40% to less than 25% in the next two years, Mattel still expects to raise prices in the U.S. this year to offset the 145% tariff on Chinese imports.
How much prices will go up for items like “Masters of the Universe’ action figures, we just don’t know…
…but Mattel does not believe the solution for affordable toys will be to manufacture them in the United States if the Chinese tariffs stay permanent. “We don’t see that happening,” Mattel CEO Ynon Kreiz said.
“We need to remember that a significant part of toy creation happens in America. Design, development, product engineering, brand management all happens in America.” Ynon Kreiz said “Making product, producing product in other countries, allows us to create quality products at affordable price points.”
We’ll see you next time.
How much would these figures cost if the were made here in the US. 1 dollar more? 5 dollars more? 10 dollars more? All worth it if you ask me.
@caliban Yes, Yes, Yes.
Are there companies that make toys in the United States that can be used for comparison?
Tariffs won’t bring manufacturers back to the United States but incentives will. Tax breaks will. Neither are being offered by the current administration. And since so many resources are produced internationally (like plastic and steel from China) those companies/manufacturing jobs are most likely gone forever. Tariffs will only make things worse.
Time to be even more selective in this hobby …
People are living in lala land if they think this is gonna bring back manufacturing back here. Those who actually think that will happen will have a heart attack when they see the prices of that item made here. Those are the same whiners who went crazy when burger flippers wanted a decent wage.
The only good thing that has come out of this crap is knowing who i want to spend my money with. Theres been a few companies that i will not buy from or their products, with them charging extra for “tariffs” for shit that they have had in stock forever. Its just not toy companies doing this shit. Fine, we dont like this but we all understand, charge extra for stuff that will be under these tariffs. Not for shit thats been sitting.
Mondo did it right and explained it easy. Whats in stock= no charge. ALL Preorders before a certain date= no charge. New items/new preorders= an extra charge. Its not that hard to be not be scummy.
Then the other issue is, everyone needs to stick to their guns and when they say, they wont buy anything, DONT BUY ANYTHING. If people go their same way and buy with these charges, and when they tariffs magically go away, do you think these companies are going to lower prices? If they do, not by very much. They will see things did sell at a higher price and keep those high prices.