"Will not sell a single toy in the US": Trump threatens Barbie creator with 100% duty
Kyiv • UNN
Donald Trump has threatened Mattel with a 100% duty for refusing to move production to the United States. The company plans to diversify production to other countries, not the United States.
US President Donald Trump has threatened to impose a 100% duty on toy manufacturer Mattel, the creator of the Barbie doll, after the company announced that it would diversify its production to other countries, but not to the US, The Independent reports, UNN writes.
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Sitting in the Oval Office on Thursday, Trump made it clear that he is not afraid to punish Mattel, Hot Wheels, Uno, American Girl and others for refusing to move their production to the United States - the ultimate goal of Trump's duties.
This was in response to a statement by Inon Kreiz, chairman and CEO of Mattel, in an interview with CNBC on Tuesday that the company is unlikely to move production to the US due to duties; instead, it prefers to diversify production to other countries or simply raise prices for consumers in the US.
He said that even with duties, the costs in the US are too high to produce affordable toys even for the American consumer.
"That's okay. Let him go, and we will set a 100 percent duty on his toy, and he will not sell any toy in the United States, which is their biggest market," Trump said.
Kreiz said that a "significant part" of toy creation does take place in the US, such as design, development, product engineering and brand management, but producing toys abroad allows them to create a "quality" and "affordable" product.
Approximately 20 percent of Mattel's toy imports into the United States come from China. Kreiz said the company hopes to reduce that figure to 15 percent next year and eventually to 10 percent or less in 2027. This year, Mattel is moving production of 500 of its toys from China to other locations, such as India.
Asked whether Trump's 145 percent tariffs on China or other retaliatory tariffs would inspire Mattel to move toy production to the US, Kreiz reiterated: "We don't see that happening."
The company said it intends to keep 40-50 percent of its products priced at $20 or less, but may have to raise some prices in the US.
The US President said that he believes that Mattel is threatening to move production elsewhere outside the US in order to negotiate a deal with him.