Even hot bikes could receive a price increase of Trump's tariffs

Hot Wheels toys could become far more expensive if President Trump has his way. On Thursday, the President threatened to take a 100 percent tariff on Mattel, the parent company of Hot Wheels, after the CEO promised to diversify its production to other countries (but not in the USA).

“Let her go and we will set a 100 percent tariff to his toy, and he will not sell toys in the United States, and that is her biggest market,” Trump told reporters in the White House on Friday.

The statement comes in response to A CNBC The interview took place on Tuesday with Ynon Kreiz, the chairman and CEO von Mattel. Kreiz said it was unlikely that the company would shift production to the United States to diversify production in other parts of the world instead in order to avoid 145 percent tariff for Chinese imports. He also suggested that the prices for buyers in America simply increase.

“We have to remember that a significant part of the toy creation takes place in America,” said Kreiz CNBC. “Design, development, product technology, brand management is all in America. Product production, product produce in other countries and enables us to create quality products at affordable prices.”

Mattel produces the majority of Hot Wheels toys in Malaysia, although the model cars are also manufactured in Indonesia, Thailand and China. Currently only 20 percent of the total toy production from Mattel from China. According to Kreiz, the company plans to reduce this number to 15 percent until next year and 10 percent by 2027.

Photo by: Hot Wheels

Kreiz drove to tell CNBC This matel expects it to retain 40 to 50 percent of its products below $ 20, but the tariff-induced price increases are likely.

Trump wiped the proposal in a refutation that the prices could rise due to tariffs.

“The country often decreases it, often the company accepts it, people don't accept it,” said Trump on Thursday in the Oval Office.

As The independent Note that global economists agree that tariffs affect consumers, since companies increase prices to compensate for taxes on imported goods. It is the same story with real, actual cars in which analysts expect the average transaction price for a vehicle to increase by 3,600 US dollars.

Mattel did not react immediately when he was reached by Motor1 For a statement on the President's statement. We will securely update this article when we hear.