Barbie girls may live in a more expensive world.
Mattel CEO Inon Kreis said the El Segundo-based toy maker behind Barbie and Hot Wheels is considering raising prices for US toys due to the 145% tariffs the Trump administration has imposed on Chinese imports.
“We are taking mitigation measures designed to completely offset the impact of the potential incremental costs of tariffs on future performance,” Kreiz said in a revenue call Monday.
“We make sure we offer excellent products and experiences that are affordable and have the right balance of quality and value. In this particular situation, we take a strategic approach,” he added.
The statement comes after President Trump repeatedly said he could reduce the number of toys his children have when defending the trade war with China. The potential price hike shows how tariffs can be attacked by toy makers and people who purchase their products.
“Well, maybe kids have two dolls instead of 30 dolls. So the two dolls will be a few dollars more than normal,” Trump said last week.
The White House has previously said that the administration wants to fuel more jobs in the United States and encourage people to buy American-made products.
Citing uncertainty about the economy and tariffs, Mattel suspended its financial guidance for the full year, saying it expects third-quarter tariffs to affect costs. The company estimates Trump’s tariffs could cost $270 million this year, before action to mitigate the impact.
Kreiz said Mattel is navigating uncertainty by reducing its dependence on China and diversifying the places where it makes toys. We source products from factories and third-party suppliers in seven countries.
Nearly 80% of toys sold in the US are produced in China. Mattel estimates that less than 20% of US toy production are based in China, and that the company plans to lower that percentage in 2026 and 2027.
US toy assn. Other global toy groups are also pushing for zero toy tariffs. This is an idea Mattel supports.
“Toys are the basis of children’s growth and development. No tariffs on toys allow children and families to access play,” Kreis said over the phone.
“The real prosperity is that American workers can support their families and communities because they have a good job of paying enough and bringing dignity,” said White House spokesman Kush Desai. “This is the Trump administration’s US focus on unlocking tariffs, deregulation, tax cuts and the first agenda of domestic energy.
In the first quarter, Mattel reported net sales of $827 million, up 2% compared to the same period last year. The company’s net losses increased from $12 million to $40 million in the first quarter last year.
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Original issue: May 6, 2025, 7:16pm EDT
