Prepare to break open your wallet for Barbie, Mattel warns

Tariffs may force the company to increase prices on its toys.

Transcript

00:00After President Trump acknowledged his new trade policies could wind up increasing the price of

00:04some toys, Barbie maker Mattel confirmed the remarks. While the company says newly implemented

00:09tariffs didn't affect its first quarter numbers, Mattel admitted it would be looking for supply

00:13chain options outside of China. The company also said it would be taking pricing action in its U.S.

00:18business if necessary. On its earnings call, Mattel revealed that the current tariffs would

00:22add around $270 million to the company's costs this year. Despite having no impact in Q1,

00:29Mattel's CEO pushed back against the tariffs, saying zero tariffs for toys gives the greatest

00:33number of children and families access to play. The current 145% tariffs on goods coming from China

00:39is taking a heavy toll on the toy industry as a whole. Roughly 80% of all toys sold in the U.S.

00:44are made in China, according to industry group Toy Association. And according to the Commerce

00:49Department, more than 13 of the nearly $18 billion worth of toys imported into the U.S. in 2024 came

00:55from the region. That'll do it for your daily briefing. From New York City, I'm Kelsey Barberio

00:59with the street.