Seems to be like President Donald Trump is lastly getting his want: Children will likely be getting fewer dolls this yr.
On Monday, Mattel—the maker of Barbie and Sizzling Wheels—introduced it might elevate toy costs within the U.S. in response to Trump’s sweeping tariffs. The warning got here simply at some point after Trump doubled down on his declare that American kids don’t want greater than a handful of dolls.
Whereas tariffs didn’t dent Mattel’s earnings within the first quarter of 2025, the corporate mentioned it might start “pricing action” within the U.S.—Wall Avenue’s approach of claiming to anticipate value hikes.
Mattel additionally joined a rising listing of firms which have paused their full-year steering, citing a “volatile macroeconomic environment and evolving U.S. tariff situation.”
“It is hard to predict consumer spending in our sales in the U.S. in the remainder of the year and the holiday season, so we are pausing guidance until we have sufficient visibility,” Mattel CEO Ynon Kreiz mentioned.
Translation: Trump’s erratic commerce struggle might flip Barbie dolls into luxurious items.
His new 145% tariffs on most Chinese language imports are hammering the toy business. In accordance with the Toy Affiliation, roughly 80% of toys offered within the U.S. are made in China. Mattel says 20% of its toys offered listed here are China-made—but it surely’s scrambling to chop that to beneath 15% by 2026 and under 10% by 2027.
That doesn’t imply manufacturing is coming again to the U.S., as Trump may hope. Kreiz advised CNBC on Tuesday that even with tariffs, it’s nonetheless cheaper to fabricate toys abroad.
Different toy makers are making ready for value hikes, too. Kreiz mentioned Monday that he hoped 40% to 50% of Mattel’s toys would keep beneath $20, however he pushed again onerous on Trump’s insurance policies.
Barbies will even get costlier.
“Zero tariffs for toys gives the greatest number of children and families access to play,” he mentioned.
Kreiz is pleading with a president who’s mentioned—twice now—that youngsters can stay with fewer toys. This, as Trump prepares a multimillion-dollar military-style birthday parade in Washington, D.C., for his birthday on June 14.
The Toy Affiliation has warned of doable shortages earlier than Christmas. A survey of practically 400 small toy companies discovered that 64% are canceling orders, and practically half (46%) say they may go beneath inside weeks or months if the tariffs stick.
Trump’s erratic tariff insurance policies have been a multitude of delays, stroll backs, and wild additions, together with a current proposal to tax international movies. And now the toy business, as soon as flying beneath the radar, is squarely within the highlight.
“Maybe the children will have two dolls instead of 30 dolls,” Trump mentioned at a current Cupboard assembly. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
This comes from a person who campaigned on speedy financial aid—however now tells Individuals to endure the ache of his financial experiments.
Toys are simply one in every of many issues getting costlier. Vehicles, flowers, groceries—they’re all going up too.
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