Mattel plans toy price increases in US amid Trump's tariffs
FILE-Mattel Inc. Barbie brand dolls hang on display at a Target Corp. store in Chicago, Illinois. (Daniel Acker/Bloomberg via Getty Images)
Mattel is planning to raise prices for some of its toys sold in the U.S. to balance higher costs related to President Donald Trump’s tariffs.
Trump imposed a 145% tariff on most Chinese-made products.
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The toy manufacturing titan and maker of Barbie, Hot Wheels, and other beloved toys, made the announcement Monday in its earnings report, according to CNN.
What does Mattel’s price increase mean for consumers?
Why you should care:
Mattel told the Associated Press that even with price increases, it expects 40% to 50% of its toys will cost $20 or less. But the company noted that it would be "difficult to predict" customer spending and the company’s U.S. sales for the rest of the year without more information.
Company executives told financial analysts on a conference call that China accounts for 40% of Mattel's global production.
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Mattel intends to move about 500 products in 2025 from manufacturers in China to sources in other countries. For the more popular toys, Mattel explained to the AP that it would secure factories in multiple countries.
Moreover, the company shared that it is taking steps to avoid potential product shortages, by focusing on getting products to stores without disruptions.
By the numbers:
Mattel reported larger than projected first-quarter sales but also a wider loss. The Associated Press reported that Mattel sales grew 2% to $827 million for the quarter that ended March 31. Mattel’s loss expanded to $40.3 million, or 12 cents per share, in the first quarter. That compares with a loss of $28.3 million, or 8 cents per share, in the year-ago period.
The Source: Information for this story was provided by CNN and the Associated Press, which cited comments from Mattel and the company’s earnings call. This story was reported from Washington, D.C.