Barbie women might be residing in a dearer world.
Mattel Chief Govt Ynon Kreiz mentioned the El Segundo-based toy maker behind Barbie and Scorching Wheels is contemplating elevating the costs of U.S. toys due to the 145% tariffs the Trump administration imposed on Chinese language imports.
“We’re taking mitigating actions designed to totally offset the potential incremental price impression of tariffs on future efficiency,” Kreiz mentioned in an earnings name on Monday.
“We guarantee that we provide nice product and experiences with the suitable steadiness of high quality and worth at reasonably priced value factors. On this explicit scenario, we’re taking a strategic strategy,” he added.
The remarks got here after President Trump has repeatedly mentioned that kids can in the reduction of on the variety of toys they’ve as he defends the commerce battle with China. The potential value hikes present how tariffs may hit toy makers and the individuals who purchase their merchandise.
“Properly, possibly the youngsters may have two dolls as an alternative of 30 dolls. So possibly the 2 dolls will price a pair bucks greater than they’d usually,” Trump mentioned final week.
The White Home has mentioned beforehand that the administration desires to gasoline extra jobs within the U.S. and encourage individuals to purchase American-made merchandise.
Citing uncertainty concerning the economic system and tariffs, Mattel additionally paused its monetary steerage for the complete 12 months and mentioned it expects tariffs to have an effect on their prices within the third quarter. The corporate estimates that Trump’s tariffs may price it $270 million this 12 months, however that’s earlier than actions to mitigate the impression.
Kreiz mentioned Mattel is navigating the uncertainty by relying much less on China and diversifying the place it makes toys. It sources merchandise from factories and third-party suppliers in seven nations.
Practically 80% of toys bought in the USA are produced in China. Mattel estimates that lower than 20% of its U.S. toy manufacturing is predicated in China and the corporate plans to decrease that share in 2026 and 2027.
The U.S. Toy Affiliation and different world toy teams are pushing for zero tariffs on toys, an concept that Mattel helps.
“Toys are foundational to a toddler’s progress and growth. Zero tariffs for toys offers the best variety of kids and households entry to play,” Kreiz mentioned throughout the name.
“Actual prosperity is American employees having the ability to assist their households and communities as a result of they’ve good jobs that pay properly and supply dignity,” White Home spokesman Kush Desai mentioned. “This what the Trump administration’s America First agenda of tariffs, deregulation, tax cuts and home vitality is targeted on unleashing — not low cost Chinese language toys.”
Within the first quarter, Mattel reported internet gross sales of $827 million, up 2% in contrast with the identical interval final 12 months. The corporate’s internet loss widened by $12 million to $40 million within the first quarter over final 12 months.
