Overview

• President Trump has threatened a 100% tariff on Mattel after CEO Ynon Kreiz announced the company would not move production to the U.S., opting instead to diversify manufacturing abroad.
• Trump's comments, including his assertion that children can settle for fewer dolls if prices rise, have drawn criticism from economists and industry leaders who warn of consumer harm and disrupted supply chains.
• Nearly 80% of toys sold in the U.S. are imported from China, and the toy industry is lobbying for exemptions from the administration's 145% tariff on Chinese goods to avoid holiday shortages and price increases.
• Vice President JD Vance defended the tariffs as part of a broader push for U.S. economic self-reliance, linking them to domestic production of pharmaceuticals and weapons, though experts question the policy's effectiveness.
• Economists argue that tariffs will likely raise consumer prices, with estimates suggesting significant financial strain on households, while smaller toy companies face greater challenges in navigating the trade policy.