Mattel CEO Confirms Toy Price Increases amid China Tariffs, Urges Zero Tariffs Globally

By Evans Momodu, Published 16:35

Mattel CEO Ynon Kreiz announces toy price hikes in the US due to rising tariffs and urges global zero-tariff policy to ensure access to affordable play. Learn how tariffs are reshaping the toy industry.

Toy giant Mattel, the maker of iconic brands like Barbie and Hot Wheels, has confirmed it will raise toy prices in the U.S. in response to steep tariffs on Chinese imports. The announcement, made in its latest earnings report, follows escalating trade tensions and a growing push by industry leaders to restructure global supply chains.

President Donald Trump recently warned that the trade war may cause toy prices to rise “a couple bucks more.” For families buying toys in the U.S., that forecast is already materialising.

Mattel’s Chief Financial Officer Anthony DiSilvestro said current U.S. tariffs on Chinese imports could cost the company approximately $270 million in 2025 — and that’s before any mitigation efforts. Nearly 80% of toys sold in the U.S. are manufactured in China, according to the Toy Association.

Some prices are already climbing. A pricing analysis from Telsey Advisory Group revealed that a Barbie swimsuit doll at Target jumped 42.9% in just one week, reaching $14.99 in mid-April.

To cushion future losses, Mattel plans to:

• Diversify production beyond China

• Relocate manufacturing for 500 toy products to other countries

• Cut U.S. imports from China to under 15% by 2026, and under 10% by 2027

CEO Ynon Kreiz said China would represent less than 40% of the company’s global toy production by the end of 2025 — half the industry average.

However, these production moves will not bring manufacturing back to the U.S. Kreiz told CNBC that outsourcing remains more cost-effective than domestic production, even with the current tariffs.

“We believe efficient production outside the U.S., paired with American-led design and creativity, offers the best balance,” Kreiz stated.

Despite confirming price hikes, Kreiz urged global leaders to eliminate tariffs on toys and games altogether.

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

He expects that even with higher prices, around 40% to 50% of Mattel's products will still be available at $20 or less.

Mattel has paused its full-year 2025 guidance, citing unpredictability in consumer spending, especially ahead of the crucial holiday season. Market analysts note that when major companies withhold guidance, it reflects heightened volatility — a red flag for investors.

Source: CNN