Harry Potter is getting dragged into the US-China trade war
- Harry Potter is getting dragged into the trade war.
- That's because its publisher, Bloomsbury Publishing, produces some of its books in China, which as of September 1 became subject to a 15% tariff from the US.
- Nigel Newton, founder and CEO, told the Financial Times that "it may get worse before it gets better."
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The trade war has been raging for months now taking a massive toll on the global economy, jobs and now even Harry Potter is being affected.
That's because the Harry Potter series publisher, Bloomsbury Publishing, which publishes 50 titles in China, is taking a hit from tariffs imposed by the Trump administration on China, according to the Financial Times.
The books are part of the $300 billion worth of goods subject to a 15% tariff which came into effect September 1, the newspaper said. That means the books just became more expensive.
"It is not a cost we anticipated, and it's one we hope to take in our stride," Newton said, according to the BBC.
The Trump administration in September slapped tariffs on Chinese goods including shoes, apparel, TVs, and video game consoles. JPMorgan said at the time that Americans could face up to $1,000 in extra costs a year.
The Financial Times added that JK Rowling is still the publisher's biggest author in terms of sales and that a special edition of "Harry Potter and the Goblet of Fire" was among the best sellers for the second half of this year.
Nigel Newton, founder and CEO of Bloomsbury, told the Financial Times that the publisher "could have done without" the tariffs, and warned that if the scheduled tariff hikes due to go in place in December go ahead, "it may get worse before it gets better."
Bloomsbury shares fell on Tuesday after reporting lower revenue and profits in the first half.