Mattel is considering raising the prices of U.S. toys due to hefty tariffs on Chinese imports, as stated by CEO Ynon Kreiz. The tariffs, imposed by the Trump administration, could result in a $270 million cost for the company this year. Kreiz emphasized the need for a strategic approach to mitigate these costs while maintaining quality and affordability for consumers. As uncertainty looms over the economy, Mattel is also diversifying production locations away from China, which currently accounts for nearly 80% of toy sales in the U.S.
"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," Kreiz added.
"The potential price hikes show how tariffs could hit toy makers and the people who buy their products," Kreiz stated.
"Citing uncertainty about the economy and tariffs, Mattel also paused its financial guidance for the full year," said the company.
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