Last week, President Donald Trump suggested that his trade policies could lead to higher prices for children’s toys, including dolls. Mattel, the manufacturer of Barbie, announced plans to increase prices on American toys due to tariffs, as stated in its earnings report.
While tariffs did not impact Mattel’s earnings in the first quarter, the company intends to diversify its supply chain outside of China and raise prices where necessary to mitigate future losses. A prolonged trade war could make extensive Barbie or Polly Pocket collections a luxury for many American families. Trump’s tariffs on goods from China are significantly affecting the toy industry, with nearly 80% of all toys sold in the U.S. being made in China. Mattel’s CFO, Anthony DiSilvestro, stated that the current tariffs could cost the company approximately $270 million this year before considering any mitigating actions.
There is already evidence of price increases. According to Telsey Advisory Group, a Barbie doll with a swimsuit sold at Target rose by 42.9% in mid-April to $14.99. Mattel’s CEO, Ynon Kreiz, expects 40% to 50% of its products to remain priced at $20 or less under current scenarios but advocates for zero tariffs on toys globally to ensure broader access for families.
Mattel sources products from seven countries and aims to reduce its reliance on Chinese production to less than 40% globally by 2025, with further reductions planned for 2026 and 2027. The company has also paused its full-year 2025 guidance due to uncertainty in consumer spending, especially during the holiday season.
— new from CNN