Mattel’s CEO has confirmed that the company intends to increase prices, while simultaneously advocating for zero tariffs on products.
Last week, President Donald Trump warned Americans that his trade war could result in a “couple of dollars” more expensive prices for children’s figurines. At least, that appears to have transpired.
Mattel, the toy manufacturing behemoth and creator of Barbie, announced in its earnings report on Monday that it intends to increase the prices of American products in response to tariffs.
Mattel stated that tariffs had not had an impact on its earnings during the initial three months of the year. It intends to “where necessary, take pricing action in its US business” and diversify its supply chain beyond China in order to reduce future losses.
That is the jargon of Wall Street, which indicates that prices are on the rise.
An extensive Barbie or Polly Pocket collection may soon be considered a luxury for many American families due to a protracted trade conflict.
The toy industry is being severely impacted by the 145% tariffs that President Trump has imposed on the majority of products imported from China.
The Toy Association, an industry organization, reports that China is the source of nearly 80% of the products sold in the United States.
During the earnings call on Monday, Mattel CFO Anthony DiSilvestro stated that the current tariffs would result in a cost of approximately $270 million for the company this year, and that is before any of the mitigating measures are taken.
There is already evidence that certain expenses are increasing.
A Barbie figurine with swimwear sold at Target increased in price by 42.9% over a week in mid-April, reaching $14.99, according to a product pricing analysis conducted by Telsey Advisory Group.
This is one of the most significant increases that the consumer research firm has observed.
On Monday, Chief Executive Ynon Kreiz informed investors that under the current scenarios being considered in response to tariffs, 40% to 50% of the company’s products are expected to remain priced at $20 or less.
Nevertheless, he also promoted the elimination of tariffs on toys and diversions worldwide.
“The greatest number of children and families have access to play as a result of zero tariffs on toys,” he stated.
Kreiz stated in February that Mattel obtains its merchandise from seven distinct nations.
He anticipates that China will account for less than 40% of the global production of products in 2025, which is half the industry average.
Additionally, he intends to reduce the volume of US imports from China to less than 15% in 2026 and less than 10% by 2027.
Kreiz announced on Monday that it will be shifting the production of 500 toys from China to other countries.
Mattel has also joined the extensive list of companies that have suspended their full-year 2025 guidance due to the difficulty in predicting consumer spending, particularly during the lucrative holiday season.
Experts have previously informed CNN that the removal of guidance by companies is a significant event, as it creates a significant amount of uncertainty, which is a common apprehension among investors and analysts.
