The figures are in: Big Toy and Auto Companies bring how much the prices cost them costs.
Toyaker Hasbro said in his quarterly call on Wednesday that he had recorded $ 1 billion for consumer products just in the second quarter due to pricing impacts and long -term prospects. Although the company provides for overall growth in 2025 with games that behave well, it expects consumer products to drop from 5% to 8% this year due to import taxes. It provides that prices will make a bump of $ 60 million this year.
To mitigate the pricing impacts, Hasbro strives to reduce the toys and American games he obtains from China by around 50% to less than 40% by 2027. And he plans to bring more production to the United States – which President Donald Trump prompted companies to do.
Meanwhile, his competitor Mattel plans that prices could make a bump this year up to $ 100 million. The company said that it had adjusted prices – but did not specify what the price increases were, which products were assigned or when the changes came into force.
“This is the price necessary to compensate for some of the winds in addition to the range of a multitude of other actions that we take,” said Mattel’s financial director Paul Ruh.
The company claims that it strives to expand its supply chain more quickly and to improve its product supply to help mitigate the pricing impacts. It does not expect more price increases this year.
And prices do not only affect toy companies – they also strike some of the world’s largest car manufacturers in the world.
General Motors said this week’s prices cost him $ 1.1 billion in the second quarter. And he expects the overall prices this year to cost him $ 4 billion at $ 5 billion. Until now, the car manufacturer who produces Chevys, Cadillac and other brands has eaten this cost, and he tries to compensate for part of the impact by cost reductions and investments in the United States
“Many manufacturing announcements that we made earlier in the quarter on hiking production here in the United States, with 4 billion dollars in capital initiatives, will have an effect because we get 18 to 24 months,” said the financial director of financial director Paul Jacobson said to CNBC.
Stellantis, the manufacturer of Jeep, Chrysler and Dodge, said that he expects a loss of $ 2.7 billion in the first half of this year, partly from prices.
And Volvo has just reported a sharp drop in operating profit in the second quarter. He now plans to Add your best -selling XC60 SUV to the production line of its South Carolina factory next year.
The automotive industry is currently subject to 25% prices on imported cars and parts and 50% on steel and aluminum. This is part of a patchwork of constantly evolving prices, because the Trump administration is looking for agreements with business partners around the world before its price of price of August 1. The last: an agreement with Japan establishing 15% prices on Japanese imports, less than 25% of Trump had threatened.
The American Automotive Policy Council, a group of the industry representing the three automakers of Detroit, General Motors, Ford and Stellantis, fears that the agreement in Japan will injure companies to make cars in North America. Japan tariffs by 15% are lower than 25% in Canada and Mexico, where many American car brands make their cars, trucks, trucks and SUVs.
“Any agreement that charges a lower price for Japanese imports without practically no American content than the price imposed on North American built vehicles with high American content is a bad deal for American and United States workers,” said Matt Blunt, president of the American Automote Policy Council, in a press release.
Commerce secretary Howard Lutnick has rejected complaints that American car manufacturers could face higher rates than companies that fully manufacture cars in Japan.
“It’s so silly,” he said In a CNBC interview. “American manufacturers will succeed in America very well as long as they build it in America.”
Car manufacturers have not yet really increased prices as a result of prices, but that can change.
“The challenge will be for the rear half of the year is to understand,” he will continue to absorb a majority of the pricing impact where we are starting to see this increase in consumer prices while they are starting to try to transmit part of the impact, “said Erin Keating, Executive Analyst of Cox Automotive.
COX Automotive provides that cars prices can increase by 4% to 8% by the end of the year. He also found that the inventory of new and used cars abandoned in July.
And the prices could mean fewer toys on the shelves this holiday season. Hasbro reports that some retailers stop or slow down imports from the holiday inventory.
“Many hot products will probably be out of stock in stock because we are simply not going to reconstruct them because we did not have the initial inventory for them,” said Hasbro CEO Chris Cocks. “So, like a Play-Doh Barbie, a nano-Mals, a baby Evie. If you are a mom or a dad, you will probably want to buy this early.”