Mattel CEO confirms plans to raise prices as he calls for zero tariffs on toys

Barbie toy products, made by Mattel, are seen for sale at a store in New York City on April 10, 2025. (Timothy A. Clary/AFP/Getty Images/File via CNN Newsource)

Last week, U.S. President Donald Trump advised Americans that his trade war could result in children’s dolls costing “a couple bucks more.” That, at least, seems to have come to fruition.

Mattel, the toy manufacturing giant and maker of Barbie, plans to raise prices on American toys due to tariffs, it said Monday in its earnings report.

Mattel said that tariffs hadn’t affected its earnings for the first three months of the year. To mitigate future losses, it plans to diversify its supply chain outside of China and “where necessary, taking pricing action in its US business.”

That’s Wall Street speak for higher prices.

A prolonged trade war means that for many American families, an extensive Barbie or Polly Pocket collection could soon be a luxury. Trump’s 145% tariffs on most goods coming from China are slamming the toy industry. Nearly 80% of all toys sold in the United States are manufactured in China, according to industry group the Toy Association. Mattel CFO Anthony DiSilvestro said during its earnings call on Monday that the current tariffs would cost it roughly $270 million this year and “that’s before you consider any of the mitigating action.”

There’s already evidence some prices are on the rise. According to a product pricing analysis from Telsey Advisory Group, a Barbie doll with swimsuit sold at Target rose 42.9% over a week in mid-April to $14.99. That’s among the largest jumps the consumer research firm tracked.

Chief Executive Ynon Kreiz told investors Monday that “under the current scenarios we are considering” in response to tariffs, he expects 40% to 50% of its products to remain priced at $20 or less. However, he also advocated for zero tariffs on toys and games around the world.

“Zero tariffs for toys gives the greatest number of children and families access to play,” he said.

Mattel sources products from seven different countries, Kreiz said in February. He expects China to represent less than 40% of global production for its toys in 2025, half the number of the industry average. He also plans to slash US imports from China to less than 15% in 2026 and less than 10% by 2027. On Monday, Kreiz said it will be relocating production of 500 toys from China to other countries.

However, that production will not shift to the United States. Kriez told CNBC Tuesday that even if tariffs on toys remain, it would still be cheaper to manufacture toys outside America.

“We believe that production in other countries where we can be efficient and more productive is the best balance between manufacturing outside of the (United States) and continue to develop product in term of design and creativity in America,” Kriez said.

Mattel also joins the laundry list of companies that has paused their full-year 2025 guidance because it said it’s hard to predict consumer spending, particularly in the lucrative holiday season. It’s a big deal when companies pull their guidance, experts previously told CNN, because it raises significant uncertainty — something investors and analysts all run away from.