New York — President Donald Trump’s ongoing trade conflict with China may soon lead to higher prices for American toys, including popular items like Barbie dolls. Mattel, a prominent toy manufacturer known for its iconic dolls, announced on Monday that it plans to increase prices in response to new tariffs imposed on imports from China.
Despite no impact on earnings in the first quarter of this year, the company foresees challenges ahead. Mattel indicated that diversifying its supply chain beyond China and implementing price increases in the U.S. are pivotal to mitigating potential losses stemming from trade tensions. The toy industry is particularly vulnerable, with approximately 80% of toys sold in the United States produced in China.
Chief Financial Officer Anthony DiSilvestro revealed in a recent earnings call that the tariffs could cost Mattel around $270 million this year. This figure does not account for any adjustments the company may make in response. Analysts note that early signs of price hikes have already surfaced; a pricing analysis revealed that certain Barbie dolls have seen their prices rise dramatically.
To address the ongoing cost pressures, Mattel’s Chief Executive Ynon Kreiz shared his outlook for the company’s pricing strategy. He suggested that between 40% and 50% of their products would remain priced under $20, but he also advocated for the elimination of tariffs on toys and games to ensure broader access for families and children. “Zero tariffs for toys gives the greatest number of children and families access to play,” he asserted.
Mattel is already taking steps to shift its production strategy. Kreiz announced that the company sources products from multiple countries, with plans for China to constitute less than 40% of its total production by 2025. The company aims to reduce U.S. imports from China to under 15% in 2026 and to below 10% by 2027.
In light of uncertainty in consumer spending patterns, especially with the holiday season approaching, Mattel has also suspended its full-year guidance for 2025. Experts highlight that such pauses may signal significant market volatility, which often makes investors uneasy.
As the trade conflict continues, families may find themselves grappling with the potential consequences of rising toy prices. For many, the dream of a diverse collection of dolls or action figures could become increasingly challenging to achieve. Mattel’s proactive measures and pricing strategies will be watched closely as the retail landscape evolves.