Tariffs may force the company to increase prices on its toys.
Transcript:
After President Trump acknowledged his new trade policies could wind up increasing the price of some toys — Barbie-maker Mattel confirmed the remarks. While the company says newly implemented tariffs didn’t affect its first quarter numbers, Mattel admitted it would be looking for supply chain options outside of China. The company also said it would also be “taking pricing action in its US business” if necessary.
On its earnings call, Mattel revealed that the current tariffs would add around $270 million to the company’s costs this year.
Despite having no impact in Q1, Mattel’s CEO pushed back against the tariffs saying, “Zero tariffs for toys gives the greatest number of children and families access to play.”
The current 145% tariffs on goods coming from China is taking a heavy toll on the toy industry as a whole. Roughly 80% of all toys sold in the U.S. are made in China, according to industry group Toy Association. And, according to the Commerce Department, more than $13 of the nearly $18 billion worth of toys imported to the U.S. in 2024 came from the region.
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