There is one notable exception in President Trump’s list of high tariffs on Chinese goods, ranging from 245% on needles and syringes to 170% of squid: zero tariffs on children’s books. They are eligible for one of the few tariff levels known as “informational materials.” Mattel CEO Ynon Kreiz believes toys should also be exempt from tariffs in the children's product category.
“Global toys should be zero tariffs,” Crez said in an interview on stage at the World Economic Summit in Semafor today (April 24) in Washington, D.C. (April 24), saying, “We believe that given the role toys play in society, tax exemptions should be paid.” ”
Still, it's a long photo that might require a lot of lobbying. Meanwhile, even if tariffs on Chinese goods remain high, the Mattels are in a better position than many of their competitors, Crez noted.
In the entire industry, about 80% of toys are made in China. However, Mattel has reduced its dependence on China's manufacturing industry to around 40%. According to Kreiz, only 20% of Mattel products sold in the United States are produced in China today. The company now produces in seven countries including Indonesia, Malaysia, Mexico and Thailand. If Trump's “reciprocity” tariffs return, these countries will now impose 10% tariffs within three months and face steep tax rates within three months. By 2027, Mattel aims to ensure that no single country accounts for more than 25% of its global production.
Since joining Mattel in 2018, Kreiz is a former entertainment executive who has been focusing on IP monetization and brand storytelling. He revitalized Mattel (Mattle Barbie The movie will be released in 2023.
“Mattel grew from a toy manufacturing company that is manufacturing merchandise and becoming an intellectual property company that manages franchises,” Crez said. “Most of our business is about growing our core business, going beyond toys and capturing the full value of our intellectual property.”
