Toy giant Mattel has announced it will increase prices on some of its products in the United States, citing rising costs tied to President Donald Trump’s renewed tariffs on imports from China and other countries.
The California-based company, best known for Barbie dolls and Hot Wheels, told investors that the ongoing trade tensions have forced it to rework both its pricing and supply strategies. About 20 percent of the toys Mattel sells in the U.S. are imported from China, but the firm said it aims to cut that figure to below 15 percent by next year.
“Given the volatile macroeconomic environment and evolving U.S. tariff landscape, it is difficult to predict consumer spending,” Mattel said in a statement accompanying its latest financial results. The company also flagged potential weakness in holiday-season sales, which typically make up a significant portion of its annual revenue.
Since returning to office in January, President Trump has imposed sweeping new import taxes on goods from China, with some rates reaching as high as 145 percent. When combined with existing duties, levies on certain Chinese products could total up to 245 percent. Beijing has retaliated with tariffs of its own, including a 125 percent tax on select American exports.
Mattel isn’t alone in facing pressure from the trade policies. Automaker Ford said the tariffs are expected to increase its costs by roughly $1.5 billion this year. The company is attempting to offset those expenses through logistics changes, including shifting vehicle deliveries from Mexico to Canada. Even so, Ford suspended its annual earnings forecast due to mounting uncertainty.
In April, a wave of multinational companies — including Intel, Adidas, Skechers, and Procter & Gamble — voiced concern over the broader impact of tariffs. Intel’s CFO warned of heightened recession risks, citing unpredictable trade dynamics and regulatory shifts. Adidas said U.S. prices for shoes like the Gazelle and Samba are likely to rise. Skechers described the current landscape as too unstable to confidently predict financial outcomes.
Procter & Gamble, which manufactures household brands like Gillette and Head & Shoulders, said it may raise prices to counter higher costs tied to sourcing materials from China and other affected countries.
Mattel, which also imports toys from Indonesia, Malaysia, and Thailand, noted that tariffs imposed on those nations in April were temporarily paused for 90 days. However, it remains unclear whether that relief will be extended.
Last week, Trump acknowledged the potential fallout from his tariff strategy, suggesting American children might end up with fewer toys but insisting the economic burden would fall more heavily on China.
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