Mattel, the maker of Barbie and Hot Wheels, is raising toy prices as Trump’s tariffs on China increase production costs. Mattel CEO Ynon Kreiz said that toy design, development, and engineering still happen primarily in the United States today.
However, Kreiz explained that manufacturing toys abroad enables the company to maintain product quality and affordable price points for consumers. Mattel has worked for nearly a decade to diversify manufacturing, reducing China’s share to less than 40% by year’s end.
By 2026, Keriz expects no single country will account for more than 25% of Mattel’s global sourcing or manufacturing footprint. Mattel has introduced price hikes across US markets to manage rising expenses while ensuring many toys remain priced below $20.
Since Trump announced tariffs in April, Mattel’s stock has fallen nearly 19%, reflecting mounting investor concern over rising costs. The Trump administration has implemented tariffs on China, reaching up to 145%, with some combined levies hitting as high as 245%.
China retaliated by imposing a 125% tax on American goods, deepening the trade standoff between the two powerful economies. Mattel currently imports about 20% of its US-sold goods from China and plans to cut that figure to below 15%.
Other countries supplying Mattel, such as Indonesia, Malaysia, and Thailand, have also faced Trump’s tariffs, though those are currently paused. Automaker Ford reported that tariffs would increase costs by $2.5 billion this year, but has offset $1 billion through rerouting.
Major firms like Intel, Adidas, Skechers, and Procter & Gamble also warn that tariffs could trigger price hikes and potential slowdowns. Adidas warned that tariffs would make shoes like Gazelle and Samba significantly more expensive for American consumers this year.
