Mattel toys rise in prices in trade war
Toymaker Mattel says it is increasing prices for some toys as a “direct result” of the Trump administration’s tariffs.
A few days after President Donald Trump tried to downplay price increases by saying that American children should protect fewer possessions, one of the nation’s largest toy manufacturers is warning of rising consumer costs.
Mattel, the iconic Barbie manufacturer, said in its first quarter revenue report this week it plans to raise prices for American toys in response to the administration’s new trade policy directly.
“The company operates in an uncertain macroeconomic environment with significant volatility, including global trade policy and changes in US tariffs,” the May 5 report said.
In addition to Barbie, Mattel’s most recognised franchise brands include Hot Wheels, Fisher Price, American Girl, Thomas & Friends, UNO, Masters of the Universe, Matchbox, Monster High, Mega and Poly Pocket. According to Chief Financial Officer Anthony Disilvestro, about half of Mattel’s business is in the US, but it is an international brand.
While tariffs did not affect Mattel’s first quarter revenue, the company said it was taking “mitigation actions” to offset the potential impact of the new tariffs. In addition to rising prices, the toy giant plans to take steps to diversify its supply chain and further reduce its dependence on products from China. In its May 5th revenue presentation, the company said it would be difficult to predict annual sales due to evolving US tariffs and a volatile macroeconomic environment.
Disilvestro said at a meeting on March 13 that it is expected that less than 40% of the company’s total production this year will come from China.
The report didn’t include details on which Mattel products will be more expensive in the coming months, but 40% to 50% of projects are under $20 for projects.
The Trump administration has imposed a total of 145% tariffs on imports from China. The 10% baseline tariff in most other countries remains in effect despite delaying the 90-day steep mutual tariffs, in addition to the 25% tariffs on foreign automobiles, steel and aluminum.
In an interview with NBC’s “Meet the Press,” which aired on May 4th, Trump repeated the more expensive doll scenario to prevent tariff-induced price increases. The president has argued that China will bear the brunt of his tariffs, but recently he has begun to openly acknowledge and disregard the true potential of rising costs that have been handed over to American shoppers.
“I don’t think a beautiful baby girl needs – it’s 11 years old – you need to have 30 dolls,” Trump told Meet the Press host Kristen Welker. “What we were doing in China was incredible, so I think they could have three dolls or four dolls. We had a trade deficit of hundreds of millions of dollars with China.”
A week ago, Trump dismissed concerns about the cost in an interview with ABC, saying, “The kids have two dolls instead of 30 dolls,” and “maybe two dolls would cost a few dollars more than normal.”
Donation: Joey Garrison, USA Today.
Kathryn Palmer is a trending news reporter for USA Today. You can contact her kapalmer@usatoday.com And with x @Kathrynplmr.