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yesterday

Trump Threatens 100% Tariff on Mattel Toys, Cuts U.K. Luxury Car Duties

The administration pressures Mattel to move production to the U.S. while reducing tariffs on British luxury cars, intensifying trade policy debates.

Hot Wheels cars; A Rolls Royce car.
President Donald Trump delivers remarks on a trade deal with United Kingdom in the Oval Office of the White House, Thursday, May 8, 2025, in Washington. Barbie doll in its box is seen on the stand of a toy store on July 19, 2023 in Madrid, Spain.
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Overview

  • President Trump announced a reduction of tariffs on U.K. luxury cars, lowering the rate from 27.5% to 10%.
  • Trump threatened a 100% tariff on Mattel toys if the company does not relocate manufacturing to the U.S., its largest market.
  • Mattel CEO Ynon Kreiz confirmed the company is diversifying production out of China but does not plan to move manufacturing to the U.S., citing cost concerns.
  • The U.S. imports approximately 75% of its toy products from China, leaving the toy industry heavily exposed to ongoing tariffs.
  • Economists and industry leaders warn that higher toy tariffs could lead to increased consumer prices and reduced inventory during key shopping seasons.