Mattel, the maker of Barbie, announced it will increase prices on select toys in the US as tariffs imposed by the Trump administration drive up costs. The US accounts for nearly half of its sales, and currently, 20% of Mattel's toys sold in the US come from China. Additionally, the company is gearing up to lower this percentage to below 15% by 2026 by shifting production to countries like India. The volatile economic environment makes future sales forecasts challenging, prompting the firm to withdraw its annual financial targets.
Given the volatile macroeconomic environment and evolving US tariff landscape, it is difficult to predict consumer spending and Mattel's US sales in the remainder of the year.
The US and China have hiked tariffs on each other's goods to more than 100% since Trump took office earlier this year, in a full-on trade war.
We do support the Toy Association's advocacy for zero tariffs on toys, said Mattel's chief executive, Ynon Kreiz.
Mattel plans to cut its China-sourced imports in the US below 15% by 2026, ramping up production in other countries.
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