Between Brexit and the US-China trade war, the foreign exchange market has experienced some turbulence as of late, impacting the opportunities and challenges in international toy trade.
Since the EU referendum in 2016, the pound has dropped against the dollar and euro, making British imports more affordable for the US and Europe, while imports for Britain have become more expensive, affecting the manufacturing industry as a whole. After Brexit, this could all change with further fluctuations in the pounds, while there could be a range of new trade tariffs and costs for toy companies to swallow.
This has led to companies within the toy industry asking themselves whether they need to set up an office in the EU and how to manage their potential international payroll in the wake of any changes in the currency exchange market.
Such uncertainty has only been exacerbated by the likelihood that, whether toys will be subject to trade tariffs or not, the US-China trade war will also have an impact on the toy industry. As the two major players in international toy trade, it’s widely anticipated that the outcome will have a knock-on effect for toy manufacturers in the UK.
Download our whitepaper for advice on how to manage your company’s foreign currency exposure in the wake of Brexit and the rising trade tensions between the US and China.
Also, visit our Brexit Hub to stay up to date with the latest Brexit developments and their impact on the currency markets.