Latest news with #Kreiz
Yahoo
16-05-2025
- Business
- Yahoo
'He Won't Sell One Toy In The United States,' Says Donald Trump Suggesting A 100% Tariff On Mattel Which He Seemed To Mistake For A Country
President Donald Trump has doubled down on his aggressive tariff stance, taking aim at toy giant Mattel Inc. (NASDAQ:MAT) as part of his ongoing trade dispute with China. In remarks from the Oval Office on Thursday, Trump seemed to mistake the company for a country, saying, "Mattel, I don't know, I'm not so sure, they also said, they're the only country I've heard they said, 'Well, we're going to go counter, we're going to try going someplace else,' that's okay.'Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Hasbro, MGM, and Skechers trust this AI marketing firm — He continued, "Let him go and we'll put a 100% tariff on his toys, and he won't sell one toy in the United States, and that's their biggest market." Mattel recently announced plans to diversify its supply chain to reduce its reliance on Chinese manufacturing, a response to Trump's steep import tariffs. CEO Ynon Kreiz told CNBC that the company is focused on global diversification, aiming to ensure that no single country will handle more than 25% of its sourcing by the end of 2025, including China. Kreiz dismissed the idea of moving production back to the U.S., saying, "We don't see that happening." The company's shift comes as Trump pushes for more U.S.-based manufacturing, despite the higher costs this approach would impose on companies and consumers. Trending: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Trump recently downplayed concerns about the impact of tariffs on toy prices, saying children might just end up with "two dolls instead of 30" and that the remaining toys might "cost a couple of bucks more." According to a recent New York Times report, around 80% of all toys and 90% of all Christmas decorations sold in the U.S. are produced in China. With tariffs of up to 145% currently in place, many companies have paused new orders, further threatening the availability of popular holiday items. Industry experts have warned that these tariffs could result in a significant toy shortage this Christmas. Toy Association's CEO Greg Ahearn told the Times that the situation is a "frozen supply chain" and called for a 24-month reprieve on tariffs to give manufacturers time to adjust their sourcing the maker of iconic brands like Barbie, Hot Wheels, and Fisher-Price, has been gradually reducing its reliance on China for nearly a decade. CEO Kreiz told CNBC that by the end of 2025, the company aims to have no single country handle more than a quarter of its production. However, this global diversification strategy has not included a significant move toward U.S. manufacturing. Trump's latest comments suggest the White House is prepared to penalize companies that try to sidestep his trade policies. "I wouldn't want to have him as an executive too long," Trump said, seemingly referencing Kreiz's strategy to diversify rather than relocate production to the U.S. With the holiday season fast approaching, the question remains whether parents will be willing to pay higher prices for fewer toys as Trump's trade policies continue to ripple through the retail sector. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MATTEL (MAT): Free Stock Analysis Report This article 'He Won't Sell One Toy In The United States,' Says Donald Trump Suggesting A 100% Tariff On Mattel Which He Seemed To Mistake For A Country originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Miami Herald
11-05-2025
- Business
- Miami Herald
Major retailer gets bombshell threat over tariff strategy
There's been a lot of speculation about tariffs since late 2024, when they were front and center during the presidential election. The reality is that U.S. consumers are fed up with higher prices. They've been battling rampant inflation since 2021 and are desperate for relief. But tariffs could deliver anything but. Don't miss the move: Subscribe to TheStreet's free daily newsletter It's too soon to know just how extensively tariffs will impact the U.S. economy, and how drastically they'll drive the cost of consumer goods upward. But the fear is that even giant retailers like Walmart and Costco will only be able to do so much to shield consumers from price increases. Related: Walmart makes drastic decision amid tariff threats A number of major retailers have reassured consumers that they're ready for tariffs and have strategies in place to mitigate them. But at the end of the day, tariffs remain a risk to consumers as well as retailers. If consumers can't keep up with their costs, they're going to have to cut back somewhere. It won't be surprising to see an increase in retail bankruptcies once tariff policies really take hold. Famous toymaker Mattel is a mainstay on big box store shelves. And fans of product lines like Barbie and Hot Wheels have long remained loyal to the brand. But like retailers across the board, Mattel has concerns over the impact of tariffs on its business. And on its most recent earnings call, the company felt compelled to warn investors that tariffs could lead to higher prices. Related: Hey Barbie! Mattel warns that tariffs could push prices higher Mattel went so far as to pause its 2025 forecasts until it had more of a concrete idea of what tariffs would do to its business. And the fact of the matter is that most retailers really don't have a full grasp of what's to come just yet. The best retailers can do at this point is prepare to be adaptable. Mattel CEO Ynon Kreiz, meanwhile, said the company was "ready for the challenge" in the context of tariffs. To manage the impact of tariffs, Mattel recently shared plans to shift much of its production out of China. Mattel actually began slowly shifting production out of China about seven years ago and has been actively looking to diversify its supply chain. But Kreiz said that the company is specifically not looking to move production over to the U.S. Related: Popular discount retailer sounds tariff warning consumers need to hear "We believe that production in other countries, where we can be efficient and more productive, is the best balance between manufacturing outside of the U.S. and continuing to develop products in terms of design and creativity in America," said Kreiz in a CNBC interview. President Trump was not happy to hear that Mattel planned to move away from China. And he went so far as to threaten a 100% tariff on Mattel specifically. "They said, 'Well, we're going to go counter. We're going to try going someplace else.' That's okay, let him go, and we'll put 100% tariff on his toys, and he won't sell one toy in the United States. And that's their biggest market," Trump said. Toys in particular have been a hotbed issue in the context of tariffs. The toy industry has been lobbying for an exemption, with major players expressing concerns about price hikes and shortages ahead of the holiday season. More Retail: Walmart, Target, Costco make major 2025 announcementFormerly bankrupt retailer makes painful decision to close more storesTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers At a time when consumers are already stretched thin, tariffs on toys could batter the industry. "Toys are essential products for childhood development and early education, and our industry works tirelessly to ensure these products remain safe and accessible," said Kathrin Belliveau, chief policy officer at The Toy Association. "Working with toy associations around the world, we are reaffirming our aspiration for toys to remain tariff-free globally." The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
NBC News
10-05-2025
- Automotive
- NBC News
Trump gives break to Rolls-Royce cars but threatens more tariffs on Mattel toys
Luxury British carmakers like Rolls-Royce, Range Rover and Aston Martin will be getting a tariff reprieve under the outlines of a trade agreement President Donald Trump announced Thursday while doubling down on his threats to continue tariffs on toys. Shortly after announcing he would reduce the tariff on British cars to 10%, from 27.5%, Trump said he would keep steep tariffs on toymaker Mattel — even if the company moves its overseas production out of China, where it makes around 40% of its toys. Mattel CEO Ynon Kreiz said this week that the company was looking to shift more production out of China, but doesn't see it moving to the U.S. 'That's OK, let him go, and we'll put a 100% tariff on his toys, and he won't sell one toy in the United States, and that's their biggest market,' Trump said in remarks from the Oval Office. 'I heard that, I mean, I watched this guy talking about how I'm going to go counter. I said, 'Well, I wouldn't want to have him as an executive too long.'' But in giving a tariff break to Rolls-Royce, Trump dismissed the idea that those vehicles could be made in the U.S. Other luxury cars made in the U.K., like Range Rovers, Land Rovers and Jaguars, will also be exempt from the 25% tariff Trump put earlier this year on all auto imports and charged a lower rate of 10%, even though those automakers ship thousands more vehicles to the U.S. than Rolls-Royce 'We took it from 25 to 10 on Rolls-Royce, because Rolls-Royce is not going to be built here. I wouldn't even ask them to do that. It's a very special car, and it's a very limited number, too," Trump said. "It's not, you know, one of the monster car companies that makes millions of cars. They make a very small number of cars that are super luxury." Mattel's Kreiz said the company has been shifting its production out of China for the past seven years and was looking to continue to diversify its supply chain in the coming months. Still, the maker of Barbie dolls and Hot Wheels cars told CNBC that 'where necessary, we will be taking pricing action in the U.S.' and didn't foresee being able to move manufacturing to the U.S. 'We believe that production in other countries, where we can be efficient and more productive, is the best balance between manufacturing outside of the U.S. and continuing to develop products in terms of design and creativity in America,' Kreiz said. The United States imports from China as much as 75% of the toy products it sells, according to the Commerce Department, making it one of the industries most reliant on that country's supply chain. Trump has repeatedly dismissed the impact of price increases on children's items produced in China, including toys and strollers, which are largely made there, though Treasury Secretary Scott Bessent said exemptions for baby products were 'under consideration.' Trump has put in place a 145% tariff on all Chinese imports, causing some companies to halt shipments to the U.S. from China or consider significant price increases. 'When you say strollers are going up, what kind of a thing? I'm saying that gasoline is going down. Gasoline is thousands of times more important than a stroller or something else,' Trump said in an interview Sunday on NBC's "Meet the Press." 'I don't think that a beautiful baby girl needs — that's 11 years old — needs to have 30 dolls. I think they can have three dolls or four dolls because what we were doing with China was just unbelievable. We had a trade deficit of hundreds of billions of dollars with China,' Trump said on "Meet the Press. " 'I'm saying they don't need to have 30 dolls,' he added.
Yahoo
09-05-2025
- Business
- Yahoo
Trump threatens Mattel with 100% tariffs as doll fallout escalates: ‘He won't sell one toy in the US'
President Donald Trump threatened to impose 100 percent tariffs on toy-maker Mattel after the company said it would diversify its production to other countries, but not the United States. Sitting in the Oval Office Thursday, Trump indicated he was not afraid to punish Mattel, the creator of Barbie, Hot Wheels, Uno, American Girl and more, for refusing to move its production in the U.S. – the ultimate goal of Trump's tariffs. It was in response to Ynon Kreiz, the chairman and CEO of Mattel, telling CNBC on Tuesday that it was unlikely the company would move production into the U.S as a result of tariffs; preferring instead to diversify production to other countries or just raise prices on U.S. consumers. He said that even with tariffs, costs are too high in the U.S. to produce affordable toys for even the American consumer 'That's ok. Let him go, and we'll put a 100 percent tariff on his toy, and he won't sell one toy in the United States, and that's their biggest market,' Trump said. Kreiz said that a 'significant portion' of toy creation does occur in the U.S., such as design, development, product engineering and brand management, but that producing toys overseas allows them to create a 'quality' and 'affordable' product. Approximately 20 percent of Mattel's toy imports to the U.S. come from China. Kreiz said the company hopes to bring that down to 15 percent next year and eventually 10 percent or less in 2027. This year, Mattel is relocating production of 500 of its toys from China to other locations, such as India. When asked if Trump's 145 percent tariffs on China, or other reciprocal tariffs, would inspire Mattel to move its toy production to the U.S., Kreiz reiterated, 'We don't see that happening.' The company said it's determined to keep 40 to 50 percent of its products priced at $20 or less, but it may have to raise some prices in the U.S. Trump brushed that claim off, saying tariffs were 'the most misunderstood thing … in any form of business.' 'Oftentimes, the country picks them up, oftentimes the company picks it up, the people don't pick it up,' Trump asserted in the Oval Office on Thursday. Global economists agree that tariffs do impact consumers because companies raise prices to offset the additional taxes on imported goods that they cannot absorb. Last week, Trump acknowledged that his tariffs could lead to higher prices or less inventory, saying, 'Well, maybe the children will have two dolls instead of 30 dolls.' He also suggested those two dolls could 'cost a couple of bucks more than they would normally.' But he has remained firm that tariffs will ultimately help the U.S. economy by increasing domestic production – a claim that economists are skeptical of. The president said he believes Mattel is threatening to move production elsewhere besides the U.S. to negotiate a deal with him.
Yahoo
08-05-2025
- Business
- Yahoo
Mattel warns of price increases amid tariff pressure
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Mattel CEO Ynon Kreiz said the toy company will take 'pricing action in our U.S. business' where necessary in response to tariffs and global trade uncertainty. The company is further diversifying its supply chain and optimizing its product sourcing and mix, the chief executive said on a Monday call with analysts. The statements were made alongside Q1 earnings. For the quarter, net sales were up 2% year over year to $827 million, while net loss widened 42% to $40.3 million. Under the current tariff structure, Mattel expects price increases will first be seen in Q3, executives told analysts on a Q1 earnings call. The increases will be done in collaboration with Mattel's retail partners, but the toy company expects that between 40% to 50% of its U.S. product mix will be priced at $20 or less, according to Kreiz. 'We are taking a strategic approach to pricing across the portfolio and have [a] very flexible framework that can quickly adapt should the … tariffs change,' Chief Financial Officer Anthony DiSilvestro said. The company is in a position to gain shelf space if retailers experience shortages. 'Given our unique capabilities and advantages, there is potential upside if there is product shortages generally or opportunities to gain additional shelf space,' DiSilvestro said. By 2027, no one country will represent more than 25% of Mattel's total toy production. Mattel currently sources products from a combination of owned and third-party vendors in seven countries. The company is accelerating its pullback from China. For the U.S., less than 20% of Mattel's global production comes from the country. Mattel plans to reduce that further, to below 15% by next year and below 10% by 2027. This year, the company will relocate production of 500 toy SKUs from China to other locations, up from 280 SKUs that were relocated in 2024. This is different from most other players in the space — nearly 80% of toys imported into the United States overall come from China. Around 96% of American toy companies are small- and medium-sized businesses and nearly half could shutter due to U.S. tariff policies, according to The Toy Association. As Mattel is positioning itself to alleviate the impact of tariffs, executives said they support the Toy Association advocating for zero tariffs on toys and games globally. 'We are confident about the mitigating actions we are taking, which are designed to fully offset the potential incremental cost impact of tariffs on future performance,' Kreiz said. 'Our international business, which comprises roughly half of our overall revenue, is not expected to be materially impacted by tariffs.' Mattel is pausing its full-year guidance due to the evolving tariff environment and unpredictable consumer spending. The company also said that it is increasing its cost savings target for the year to $80 million versus its previous objective of $60 million. The company is on track to achieve total program savings of $200 million by 2026. 'Historically, the toy industry has proven to be resilient during uncertain times, and we believe Mattel is in a much better position than the industry to adapt efficiently to the changing market conditions,' Kreiz said. Sign in to access your portfolio
