Trump's alloy tariffs deed babe products, CEO says
Los Angeles — At the Los Angeles office of Munchkin, 1 of the astir innovative babe brands successful the country, the White House's alloy and aluminum tariffs are impacting respective of the company's products.
"No 1 thinks astir a babe spoon arsenic a alloy product," Steven Dunn, Munchkin's CEO and founder, told CBS News.
President Trump past week announced that tariffs connected alloy and aluminum would treble from 25% to 50%, a determination that took effect Wednesday.
"Tariffs should beryllium strategic, Dunn said. "We request a tariff argumentation that doesn't person the unintended consequences of putting 80% tariffs connected a metallic spoon."
Dunn said making their fashionable brushed wound babe spoon volition outgo 80% much due to the fact that of the 50% alloy tariffs, plus the existing 30% tariffs connected Chinese imports.
"It's a tariff connected parents, and it's a tariff connected tiny and mean businesses passim the full country," Dunn said, adding that tariffs impact astir each of the 500-plus products that Munchkin sells, the immense bulk of which are made successful China.
He said his profits person already taken a hit, and it's not conscionable consumers feeling the impact. After the tariffs were announced, helium laid disconnected workers for the archetypal clip successful 35 years.
Munchkin said tariffs are besides impacting fashionable products specified arsenic strollers and thermometers. Some products are being discontinued.
"It conscionable volition go unaffordable if we walk connected the outgo of the tariffs, it volition marque it excessively expensive," Dunn said. "We don't judge consumers volition wage for it."
Munchkin says manufacturing its products successful the U.S. isn't feasible.
"There isn't the manufacturing base, the tooling equipment, the automation," Munchkin said.
The White House's shifting tariffs person created uncertainty for Munchkin.
Says Dunn: "It's similar being blindfolded, throwing darts astatine a rotating target."
Journalist Jo Ling Kent joined CBS News successful July 2023 arsenic the elder concern and exertion analogous for CBS News. Kent has much than 15 years of acquisition covering the intersection of exertion and concern successful the U.S., arsenic good arsenic the emergence of China arsenic a planetary economical power.
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