Latest news with #MattelInc.
Washington Post
15-05-2025
- Business
- Washington Post
Under of a cloud of tariffs, Walmart is the latest retailer to announce price hikes
NEW YORK — Volley after volley of tariffs — and at times on-again, off-again trade actions — have put companies around the world on edge. And a handful of major retailers have already raised prices across the U.S., or warned of future hikes. President Donald Trump has slapped new import taxes on nearly all of America's trading partners and a range of sector-specific goods in recent months — all while some targeted countries, notably China, have responded with their own retaliatory duties. While many of those steepest tariffs have since been paused or reduced , scores of other remaining levies have piled up on businesses. That's because companies that buy products made abroad pay the tariffs imposed on them — and, as a result, face higher costs that are typically passed on to consumers . Trump has argued that his new duties will bring manufacturing and money back to the U.S. But since so much of what we buy today relies on a global supply chain, economists have long-warned that such sweeping tariffs will mean more expensive prices from the grocery aisle to your next car repair . Many businesses (and their customers) are already facing that reality. Here's some big-name retailers that have recently announced or anticipate price hikes amid the ongoing trade wars: Walmart became the latest to join the list on Thursday — when the nation's largest retailer said it must raise prices due to higher costs from tariffs. While Walmart has built in hedges against some tariff threats, with two-thirds of its merchandise is sourced in the U.S., it still isn't immune. John David Rainey, the company's chief financial officer, emphasized that prices are going up on many necessities. The price of bananas, imported from Costa Rica, went up to 54 cents per pound from 50 cents per pound, for example. And he thinks that China-made car seats, which currently sell for $350 at Walmart, will likely go up another $100. 'We're wired to keep prices low, but there's a limit to what we can bear, or any retailer for that matter,' Rainey told The Associated Press. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month that it would also have to raise prices 'where necessary' to offset tariff costs. The toymaker makes 40% of its products in China. It warned of price hikes on May 5 — prior to the U.S. and China agreeing to a 90-day reprieve to temporarily slash the bulk of their sky-high levies — but tariffs on the country still remain higher than before Trump started ramping them up last month. In its latest earnings call, Mattel said it plans to move roughly 500 products this year from manufacturers in China to sources in other countries, compared to 280 products last year. And for some highly sought-after toys, the company said it would enlist factories in more than one country. At the start of May, Microsoft raised recommended retailer pricing for its Xbox consoles and controllers around the world. Its Xbox Series S, for example, now starts at $379.99 in the U.S. — up $80 from the $299.99 price tag that debuted in 2020 . And its more powerful Xbox Series X will be $599.99 going forward, a $100 jump from its previous $499.99 listing. 'We understand that these changes are challenging,' Microsoft wrote in a May 1 Xbox support update . The tech giant didn't point to tariffs specifically, but cited wider 'market conditions and the rising cost of development.' Beyond the U.S., Microsoft also laid out Xbox price adjustments for Europe , the U.K. and Australia . The company said all other countries would also receive updates locally. And further down the road, Microsoft said it also expects to make some of its new, first-party games more expensive this holiday season — with a price tag of $79.99. Toolmaker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs. 'In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come,' CEO Donald Allan, Jr., said in a statement last month. Executives at Procter & Gamble — the consumer product giant that makes household brands such as Crest toothpaste, Tide detergent, and Charmin toilet paper — has also said it will likely have to pass on higher prices to consumers. Last month, P&G said it's doing whatever it can to reduce higher costs from tariffs, including from shifting sourcing to changing formulation to avoid duties. But the company said shoppers may still see price hikes as early as July. ______ AP Business Writers Anne D'Innocenzio and Damian J. Troise in New York contributed to this report.
Los Angeles Times
13-05-2025
- Business
- Los Angeles Times
Inflation cooled again last month as grocery and gas prices fell, few signs of tariff impact yet
WASHINGTON — Inflation cooled for the third straight month in April even after some of President Donald Trump's tariffs took effect, though economists and many business owners expect inflation will climb in the coming months. Consumer prices rose 2.3% in April from a year ago, the Labor Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years. Grocery prices dipped 0.4%, pulled downward in part by a big 12.7% fall in the price of eggs. It was the biggest decline in food costs at home since September 2020, the government said. The report suggests the tariffs haven't yet impacted the prices of many items. Clothing costs fell 0.2% from March to April, while new car prices were unchanged. Furniture costs jumped 1.5%, however. Excluding the volatile food and energy categories, core prices were also muted, rising 2.8% in April compared with a year ago, the same as in March. On a monthly basis, they increased a mild 0.2%. Economists watch core prices because they typically provide a better read on where prices are headed. Only some early tariffs imposed by Trump were in effect in April, including 25% duties on steel and aluminum and 25% on some imports from Canada and Mexico. Trump's initial 20% import taxes on goods from China were also in place. The steel and aluminum duties will take time to affect consumer products, such as cars, and may not affect retail prices for months. Trump announced a universal 10% tariff that took effect April 5. His huge 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday. Still, economists say average tariffs are now at about 18%, roughly six times higher than before Trump took office and the highest in about 90 years. Items that were already in transit when the tariffs were imposed won't have to pay the duties, while many companies have built a stockpile of goods and could hold off on price hikes in hopes that tariffs will ultimately be reduced. Still, some companies have raised prices and others have said they plan to do so as a result of the duties. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month it would have to raise prices on some products to offset tariffs. The company makes 40% of its products in China. Tool maker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs. And executives at Procter & Gamble, the consumer products giant that makes household name brands such as Crest toothpaste, Tide detergent, and Charmin toilet paper said last month it will likely have to pass on higher prices to consumers as soon as July. Consumer prices cooled noticeably in February and March, prompting Trump to claim repeatedly on social media that there is 'NO INFLATION.' Inflation has fallen to nearly the 2% target set by the Federal Reserve, the agency charged with fighting higher prices. The smaller import taxes on Chinese goods will limit the damage to the U.S. economy, but combined with all the other tariffs, economists forecast they will still slow growth this year and worsen inflation. The Yale Budget Lab, for example, estimates the tariffs will lift prices 1.7% and cost the average household about $2,800 this year. And while Trump may tout his trade deals — such as the one with the United Kingdom reached last week — he has also said 'tariffs is the most beautiful word' in the dictionary, and is counting on revenue from duties to narrow the budget deficit, suggesting tariffs will likely remain high. The tariffs have also put the Federal Reserve in an exceedingly difficult spot, as Chair Jerome Powell acknowledged in a news conference last week. Powell said the duties have raised the risk of both higher inflation and higher unemployment, two challenges that rarely occur simultaneously. If unemployment rose, the Fed would typically cut rates to boost the economy, while if inflation worsened, the central bank would usually raise rates or leave them elevated. Rugaber writes for the Associated Press.
Chicago Tribune
13-05-2025
- Business
- Chicago Tribune
Inflation cooled again last month as grocery and gas prices fell, few signs of tariff impact yet
WASHINGTON — Inflation cooled for the third straight month in April even after some of President Donald Trump's tariffs took effect, though economists and many business owners expect inflation will climb in the coming months. Consumer prices rose 2.3% in April from a year ago, the Labor Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years. Grocery prices dipped 0.4%, pulled downward in part by a big 12.7% fall in the price of eggs. It was the biggest decline in food costs at home since September 2020, the government said. The costs of 3 consumer goods have hit all-time highs. Here's how everyday prices are changing under report suggests the tariffs haven't yet impacted the prices of many items. Clothing costs fell 0.2% from March to April, while new car prices were unchanged. Furniture costs jumped 1.5%, however. Excluding the volatile food and energy categories, core prices were also muted, rising 2.8% in April compared with a year ago, the same as in March. On a monthly basis, they increased a mild 0.2%. Economists watch core prices because they typically provide a better read on where prices are headed. Only some early tariffs imposed by Trump were in effect in April, including 25% duties on steel and aluminum and 25% on some imports from Canada and Mexico. Trump's initial 20% import taxes on goods from China were also in place. The steel and aluminum duties will take time to affect consumer products, such as cars, and may not affect retail prices for months. Trump announced a universal 10% tariff that took effect April 5. His huge 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday. Still, economists say average tariffs are now at about 18%, roughly six times higher than before Trump took office and the highest in about 90 years. Items that were already in transit when the tariffs were imposed won't have to pay the duties, while many companies have built a stockpile of goods and could hold off on price hikes in hopes that tariffs will ultimately be reduced. Still, some companies have raised prices and others have said they plan to do so as a result of the duties. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month it would have to raise prices on some products to offset tariffs. The company makes 40% of its products in China. Tool maker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs. And executives at Procter & Gamble, the consumer products giant that makes household name brands such as Crest toothpaste, Tide detergent, and Charmin toilet paper said last month it will likely have to pass on higher prices to consumers as soon as July. Consumer prices cooled noticeably in February and March, prompting Trump to claim repeatedly on social media that there is 'NO INFLATION.' Inflation has fallen to nearly the 2% target set by the Federal Reserve, the agency charged with fighting higher prices. The smaller import taxes on Chinese goods will limit the damage to the U.S. economy, but combined with all the other tariffs, economists forecast they will still slow growth this year and worsen inflation. The Yale Budget Lab, for example, estimates the tariffs will lift prices 1.7% and cost the average household about $2,800 this year. And while Trump may tout his trade deals — such as the one with the United Kingdom reached last week — he has also said 'tariffs is the most beautiful word' in the dictionary, and is counting on revenue from duties to narrow the budget deficit, suggesting tariffs will likely remain high. The tariffs have also put the Federal Reserve in an exceedingly difficult spot, as Chair Jerome Powell acknowledged in a news conference last week. Powell said the duties have raised the risk of both higher inflation and higher unemployment, two challenges that rarely occur simultaneously. If unemployment rose, the Fed would typically cut rates to boost the economy, while if inflation worsened, the central bank would usually raise rates or leave them elevated.
San Francisco Chronicle
13-05-2025
- Business
- San Francisco Chronicle
Inflation cooled again last month as grocery and gas prices fell, few signs of tariff impact yet
WASHINGTON (AP) — Inflation cooled for the third straight month in April even after some of President Donald Trump's tariffs took effect, though economists and many business owners expect inflation will climb in the coming months. Consumer prices rose 2.3% in April from a year ago, the Labor Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years. Grocery prices dipped 0.4%, pulled downward in part by a big 12.7% fall in the price of eggs. It was the biggest decline in food costs at home since September 2020, the government said. The report suggests the tariffs haven't yet impacted the prices of many items. Clothing costs fell 0.2% from March to April, while new car prices were unchanged. Furniture costs jumped 1.5%, however. Excluding the volatile food and energy categories, core prices were also muted, rising 2.8% in April compared with a year ago, the same as in March. On a monthly basis, they increased a mild 0.2%. Economists watch core prices because they typically provide a better read on where prices are headed. Only some early tariffs imposed by Trump were in effect in April, including 25% duties on steel and aluminum and 25% on some imports from Canada and Mexico. Trump's initial 20% import taxes on goods from China were also in place. The steel and aluminum duties will take time to affect consumer products, such as cars, and may not affect retail prices for months. Trump announced a universal 10% tariff that took effect April 5. His huge 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday. Still, economists say average tariffs are now at about 18%, roughly six times higher than before Trump took office and the highest in about 90 years. Items that were already in transit when the tariffs were imposed won't have to pay the duties, while many companies have built a stockpile of goods and could hold off on price hikes in hopes that tariffs will ultimately be reduced. Still, some companies have raised prices and others have said they plan to do so as a result of the duties. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month it would have to raise prices on some products to offset tariffs. The company makes 40% of its products in China. Tool maker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs. And executives at Procter & Gamble, the consumer products giant that makes household name brands such as Crest toothpaste, Tide detergent, and Charmin toilet paper said last month it will likely have to pass on higher prices to consumers as soon as July. Consumer prices cooled noticeably in February and March, prompting Trump to claim repeatedly on social media that there is 'NO INFLATION." Inflation has fallen to nearly the 2% target set by the Federal Reserve, the agency charged with fighting higher prices. The smaller import taxes on Chinese goods will limit the damage to the U.S. economy, but combined with all the other tariffs, economists forecast they will still slow growth this year and worsen inflation. The Yale Budget Lab, for example, estimates the tariffs will lift prices 1.7% and cost the average household about $2,800 this year. And while Trump may tout his trade deals — such as the one with the United Kingdom reached last week — he has also said 'tariffs is the most beautiful word' in the dictionary, and is counting on revenue from duties to narrow the budget deficit, suggesting tariffs will likely remain high. The tariffs have also put the Federal Reserve in an exceedingly difficult spot, as Chair Jerome Powell acknowledged in a news conference last week. Powell said the duties have raised the risk of both higher inflation and higher unemployment, two challenges that rarely occur simultaneously. If unemployment rose, the Fed would typically cut rates to boost the economy, while if inflation worsened, the central bank would usually raise rates or leave them elevated.
Euronews
06-05-2025
- Automotive
- Euronews
Mattel plans to increase prices for some toys to offset tariff costs
ADVERTISEMENT Mattel Inc., the maker of Barbie dolls, Hot Wheels cars and other popular toys, said on Monday that it would have to raise prices for some products sold in the US 'where necessary' to offset higher costs related to President Donald Trump's tariffs. The El Segundo, California-based company said the increases are necessary even though it is speeding up its plans to diversify its manufacturing base away from China. Trump imposed a 145% tariff on most Chinese-made products. Company executives told analysts on a conference call that China currently accounts for 40% of Mattel's global production. The company plans to move roughly 500 products this year from manufacturers in China to sources in other countries, compared to 280 products last year. For some highly sought after toys, Mattel said it would enlist factories in more than one country. To prevent possible shortages, the company said it was focusing on getting products to stores without interruptions. The company said that even with price increases it expects 40% to 50% of its toys will cost customers around $20 (€17.60) more - or perhaps under this amount. 'The diversified and flexible supply chain in global commercial organizations are clear advantages to Mattel in this period of uncertainty,' CEO and Chairman, Ynon Kreiz, told analysts. Mattel takes back its guidance outlook Citing the ongoing uncertainty surrounding the president's trade policies, however, Mattel withdrew its annual earnings forecast on Monday. The company said it would be 'difficult to predict' consumer spending and the company's US sales for the remainder of the year without more information. Mattel reported larger-than expected first-quarter sales but also a wider loss. Mattel said sales rose 2% to $827 million (€728.9m) for the quarter that ended March 31. The company's loss expanded to $40.3m (€35.5m) in the quarter. That compares with a loss of $28.3m (€24.9m) in the corresponding quarter last year. Mattel's share price was down less than 1% in after markets trading in the US.
