• by Tanya Gazdik , February 5, 2025

Mattel executives say the toymaker may hike prices for Barbie, Hot Wheels and other toys as a result of President Donald Trump's move to tack an additional 10% tariff on U.S. imports from China. 

"Mattel Chief Financial Officer Anthony DiSilvestro said in an earnings call with Wall Street analysts on Tuesday that roughly 40% of the company's toys are made in China, while noting that is less than the industry average of 80%,” according to CBS News. “Overall, the fresh U.S. levies on Chinese good affect about 20% of Mattel's global production.”

Trump has threatened to also impose 25% tariffs on imports from Mexico, where Mattel sources almost 10% of its products. The toymaker is based in El Segundo, California.

“Nevertheless, Mattel said it expects sales will increase as much as 3% this year despite an overall slowdown in toy sales last year  -- which were down 0.3% in the U.S.,” according to the New York Post. The company's "fourth-quarter adjusted earnings were 35 cents a share, versus the 20 cents a share Wall Street had expected.”

Mattel shares surged more than 15% after the toy giant said it is weighing price increases.

“Mattel’s fastest-growing segment was the vehicle toy category, driven by the performance of its Hot Wheels brand, which partially offset declines in demand for Barbie and baby gear,” according to Bloomberg.

Consumer and business groups in the U.S. have warned that the tariffs may disrupt supply chains and lead to higher prices.

“The toy industry has been facing slower sales in 2024, as a higher cost of living meant shoppers had less cash to spend on toys,” according to the BBC.

The company says it will work with its retail partners to find the right balance of quality and value at affordable price points.

"I believe ... (there is) strength in Mattel's 2025 product lineup as higher prices could stifle some demand — families are already maxed out — but great products can offset those declines," James Zahn, editor in chief at The Toy Book magazine, told Reuters.