Mattel, the maker of Barbie, announced plans to raise prices on some of its toys while also reducing its dependence on Chinese imports amid an uncertain economic and trade environment. The move comes as the toymaker anticipates steep tariff-related costs in 2025 and seeks to cushion the financial blow.
The company currently imports around 20% of its U.S. merchandise from China, according to Reuters. But that number is expected to drop significantly. "Mattel is now aiming to slash imports into the U.S. from China to under 15% by next year," the outlet reported.
Speaking Monday, Mattel Chief Financial Officer Anthony DiSilvestro said the company is bracing for roughly $270 million in additional costs due to tariffs next year. However, Mattel intends to "fully offset" the impact through strategic changes such as supply chain diversification and targeted price increases.
Mattel CEO Ynon Kreiz acknowledged the broader impact tariffs are having across the industry. “There’s no question that tariffs are creating disruption,” he said. “Many companies have stopped production and shipping to the U.S. as a result of tariffs from China. We do support the Toy Association’s advocacy for zero tariffs on toys.”
To mitigate costs, Mattel is shifting production to countries like India. Kreiz said the company is increasing production of its UNO card game there, while continuing to manufacture Barbie dolls and Hot Wheels in nations such as Indonesia, Malaysia, and Thailand.
Though tariffs didn’t impact the company’s first quarter financials, Mattel stated that the "volatile macro-economic environment and evolving U.S. tariff landscape" have made it harder to forecast U.S. sales, especially ahead of the holiday season.
The company reiterated that it will respond with a mix of price adjustments and logistics improvements. “Where necessary, taking pricing action in its U.S. business,” Mattel said.
Former President Donald Trump, whose administration recently reimposed tariffs on various toy-exporting nations, addressed the issue by saying, “Maybe the children will have two dolls instead of 30 dolls… and maybe the two dolls will cost a couple of bucks more.”