Your Barbie dolls, Hot Wheels cars will now cost more
What's the story
Mattel, the famous toy maker behind iconic brands such as Barbie dolls and Hot Wheels cars, has announced plans to hike prices in America.
The move comes as a direct response to the tariffs imposed by US President Donald Trump.
The company imports around 20% of its products sold in the US from China, and the American market represents nearly half of Mattel's global toy sales.
Forecast retracted
Response to unpredictable consumer spending
In light of the unpredictable nature of consumer spending due to Trump's tariffs, Mattel has also withdrawn its financial forecast for the year.
The company acknowledged, "Given the volatile macroeconomic environment and evolving US tariff landscape, it is difficult to predict consumer spending and Mattel's US sales in the remainder of the year and holiday season."
Production shift
Strategy to counteract Trump's tariffs
In order to lessen the effect of Trump's tariffs, Mattel intends to shift some of its production out of China and "raise prices where necessary" on its US products.
This move comes after Trump hinted that kids may not require as many toys due to the higher costs from tariffs.
He said, "Maybe the children will have two dolls instead of 30 dolls, you know, and maybe the two dolls will cost a couple of bucks more than they would normally."
Tariff impact
CEO acknowledges industry disruption
Mattel's CEO Ynon Kreiz also acknowledged the disruption, tariffs have caused in the toy industry.
He said, "There's no question that tariffs are creating disruption in the industry. Many companies have stopped production and shipping to the US as a result of tariffs from China."
Kreiz also supported The Toy Association's advocacy for zero tariffs on toys.
Strategic changes
Mattel's supply chain adjustments
In light of the tariff situation, Mattel is making strategic changes to its supply chain.
Kreiz revealed that the company is increasing production of the UNO card game in India for the US market and shifting flow from China toward international customers.
This move is part of their strategy to reduce reliance on China-sourced products in America.