Mattel Considers Toy Price Hikes Following New Trump Tariffs

The toy giant warns that tariffs on Chinese, Mexican, and Canadian imports could increase costs for products like Barbie and Hot Wheels.

President Trump enacted a 10% tariff on Chinese imports and delayed 25% tariffs on goods from Mexico and Canada, which could affect Mattel's supply chain and pricing strategies.
Mattel currently produces about 40% of its toys in China and less than 10% in Mexico, making the company significantly exposed to the new tariffs.
Mattel executives are exploring supply chain adjustments and potential price increases to offset the impact of the tariffs, while aiming to balance affordability for consumers.
The tariffs could raise annual costs for U.S. households by over $1,200, and industry experts warn of broader challenges for the toy sector, which sources 80% of products from China.
Despite tariff concerns, Mattel reported strong fourth-quarter earnings, driven by Hot Wheels and Uno sales, and forecasts a 2-3% increase in net sales for 2025.