Trump’s tariffs will raise toy prices: MGA Entertainment CEO

MGA Entertainment CEO Isaac Larian says President Trump’s December tariffs will raise the cost of his company's toys.

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"When he says that China is going to pay for the tariffs not the consumer, I call that fake news,” he told FOX Business’ Liz Claman on “The Claman Countdown.” “At the end of the day the U.S. consumer is going to pay for those tariffs, not China.”

President Trump earlier this month proposed a 10 percent tariff on $300 billion of Chinese goods, which are set to go into effect on Sept. 1. The president also delayed new tariffs on Chinese-made goods, including cell phones and toys to Dec. 15.

Larian said if the tariffs go into effect, it’s going to disrupt the toy business and will raise the price of his toys. One of the toys from Little Baby Bum called “Twinkle” could fall victim to Trump’s tariffs.

“This product is coming to the market this fall and the retail is supposed to be $15, which is a magic price point. If the tariffs go into effect, this item is going to become $18-$19 retail and that’s going to put a lot of consumers out of reach to buy this product,” he said.

Larian said the price of the LOL Surprise Pet may also increase.

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“It’s $7.99 and if the tariffs go in place they go to anywhere between $9 to $10, which basically reduces the number of items we’re going to be able to sell.”