Mattel Plans Price Hikes on Toys Due to Tariff Costs

Mattel, the maker of Barbie and Hot Wheels, announced it is withdrawing its financial forecast for the year and may raise prices on some toys sold in the U.S. due to uncertainty and increased costs from President Trump's tariffs on Chinese and other imported goods. The company is accelerating efforts to diversify its supply chain away from China, aiming to reduce imports from China to below 15% by 2026, and increasing production in countries such as India, Indonesia, Malaysia, and Thailand. Mattel's leadership emphasized the difficulty in predicting consumer spending and U.S. sales amid the volatile macroeconomic environment and evolving tariff landscape. The tariffs, which have reached up to 145% on some Chinese imports, are expected to add significant incremental costs for Mattel this year, though the company is taking steps to offset them. The broader toy industry and other major companies have also voiced concern about the disruptive impact of tariffs, warning they could lead to higher consumer prices and put smaller businesses at risk. Despite beating first-quarter sales expectations, Mattel reported a wider loss and saw its stock price fall after these announcements.