Barbie enthusiasts may soon face higher prices. Mattel CEO Ynon Kreiz announced that the toy manufacturer, known for Barbie and Hot Wheels, is considering raising U.S. toy prices due to the 145% tariffs imposed by the Trump administration on Chinese imports.
Kreiz stated during an earnings call, “We are taking mitigating actions designed to fully offset the potential incremental cost impact of tariffs on future performance.” He emphasized maintaining a balance between quality and affordability while addressing this challenge strategically.
President Trump has suggested children could manage with fewer toys, defending the trade war with China. This highlights how tariffs might affect toy manufacturers and consumers. Trump remarked, “Maybe the children will have two dolls instead of 30 dolls. So maybe the two dolls will cost a couple bucks more than they would normally.”
The White House aims to boost U.S. jobs and promote American-made products. Mattel paused its financial guidance for the year due to tariff uncertainties, expecting impacts in the third quarter. They estimate tariffs could cost $270 million this year, though measures are being taken to mitigate these effects.
Mattel plans to reduce reliance on China by diversifying production across seven countries. Less than 20% of Mattel’s U.S. toys are made in China, with plans to further decrease this percentage by 2027.
The U.S. Toy Assn. advocates for zero tariffs on toys, a stance supported by Mattel. Kreiz noted, “Toys are foundational to a child’s growth and development. Zero tariffs for toys give the greatest number of children and families access to play.”
In the first quarter, Mattel reported net sales of $827 million, up 2% from the previous year, with a net loss widening by $12 million to $40 million.
— new from Los Angeles Times