Mattel considers price hikes in response to tariffs after Trump says kids don't need a lot of dolls
Mattel Chief Executive Ynon Kreiz said the El Segundo-based toy maker behind Barbie and Hot Wheels is considering raising the prices of U.S. toys because of the 145% tariffs the Trump administration imposed on Chinese imports.
'We are taking mitigating actions designed to fully offset the potential incremental cost impact of tariffs on future performance,' Kreiz said in an earnings call on Monday.
'We make sure that we offer great product and experiences with the right balance of quality and value at affordable price points. In this particular situation, we're taking a strategic approach,' he added.
The remarks came after President Trump has repeatedly said that children can cut back on the number of toys they have as he defends the trade war with China. The potential price hikes show how tariffs could hit toy makers and the people who buy their products.
'Well, maybe the children will have two dolls instead of 30 dolls. So maybe the two dolls will cost a couple bucks more than they would normally,' Trump said last week.
The White House has said previously that the administration wants to fuel more jobs in the U.S. and encourage people to buy American-made products.
Citing uncertainty about the economy and tariffs, Mattel also paused its financial guidance for the full year and said it expects tariffs to affect their costs in the third quarter. The company estimates that Trump's tariffs could cost it $270 million this year, but that's before actions to mitigate the impact.
Kreiz said Mattel is navigating the uncertainty by relying less on China and diversifying where it makes toys. It sources products from factories and third-party suppliers in seven countries.
Nearly 80% of toys sold in the United States are produced in China. Mattel estimates that less than 20% of its U.S. toy production is based in China and the company plans to lower that percentage in 2026 and 2027.
The U.S. Toy Association and other global toy groups are pushing for zero tariffs on toys, an idea that Mattel supports.
'Toys are foundational to a child's growth and development. Zero tariffs for toys gives the greatest number of children and families access to play,' Kreiz said during the call.
'Real prosperity is American workers being able to support their families and communities because they have good jobs that pay well and provide dignity,' White House spokesman Kush Desai said. 'This what the Trump administration's America First agenda of tariffs, deregulation, tax cuts and domestic energy is focused on unleashing — not cheap Chinese toys.'
In the first quarter, Mattel reported net sales of $827 million, up 2% compared with the same period last year. The company's net loss widened by $12 million to $40 million in the first quarter over last year.
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