President
Donald Trump
‘s tariffs on Chinese imports threaten to push up prices on a number of household-name toys.
On Monday, Barbie maker Mattel announced it would be increasing prices for certain products while reducing imports to the U.S. from China, citing the “volatile macroeconomic environment and evolving U.S. tariff landscape.”
When contacted for comment, Mattel referred
kacanginka
to the statements made in its recent earnings call.
Why It Matters
Representatives of the industry have said that the tariffs will have a particularly harsh impact on the their sector, given its outsize reliance on Chinese imports, and are lobbying the administration to include toys in the list of items exempt from the duties.
Which Toys Could Increase in Price?
A number of toy companies have already warned that tariffs could prevent them from importing sufficient inventory, potentially
leading to shortages and empty shelves
that could affect holiday season shopping. In addition, a number have said that tariffs will force them to raise prices for American customers.
Mattel
Popular toys: Barbie, Hot Wheels, Uno
Announcing its first-quarter results, the California-based company said that it would be taking a number of measures to mitigate the impact of tariffs, including a reduction of its reliance on Chinese manufacturing and “where necessary, taking pricing action in its U.S. business.”
In February, Mattel said it planned to reduce its reliance on Chinese manufacturing to “less than 40 percent” of its global production, which compares to an industry average of roughly 80 percent.
On Monday, the company also paused its full-year guidance for 2025, noting that the U.S. market—which represents around half its global toy sales—would be difficult to predict given the impact of the “evolving U.S. tariff landscape.”
During Mattel’s earnings call, CEO Ynon Kreiz acknowledged the challenge of forecasting the necessary pricing adjustments, but said that, “under the tariff scenarios that we’re looking at, we expect that between 40 percent to 50 percent of our product in the U.S. will be priced at $20 or less.”
Hasbro
Popular toys: Transformers action figures, Nerf, Monopoly
Last week, Hasbro reported strong earnings for the first quarter, but warned that tariffs could be cause for concern throughout 2025.
The company cited the risks associated with the “imposition, threat or uncertainty of tariffs, including reciprocal or retaliatory tariffs,” and said that these could increase costs and, ultimately, result in higher prices for Hasbro products.
In the subsequent earnings call, Chief Financial Officer Gina Goetter said that tariffs ranging from 50 percent to the current rate of 145 on Chinese imports, as well as the 10 percent global baseline rate, could result in a $100 to $300 million hit to the company’s bottom line.
“Prolonged tariff conditions create structural costs and heighten market unpredictability,” said CEO Chris Cocks. He added that “ultimately tariffs translate into higher consumer prices,” and that “targeted pricing actions remain likely.”
Basic Fun!
Popular toys: Care Bears, Tonka Trucks, Lincoln Logs
Basic Fun! CEO Jay Foreman has issued several warnings about the impact of tariffs on the U.S. toy market, acknowledging that the company has had to pause certain shipments from China and that its toys would soon
begin disappearing from store shelves
.
“Consumers will find Basic Fun! toys in stores for a month or two but very quickly we will be out of stock and stock product will disappear from store shelves, ” Foreman said, according to The Associated Press.
In early April, Foreman said that 80 percent of toys in the U.S. market “will be twice as expensive this Christmas as they were last Christmas,” given that nearly 80 percent of toys sold in the U.S. are manufactured in China.
Foreman told CNBC that his company did not have the profit margins necessary to fully absorb the higher import taxes and, as with many industries, these costs will eventually be “passed along to the consumer.”
What People Are Saying
President Trump
reacted to the issue during a cabinet meeting last Wednesday, saying: “Well, maybe the children will have two dolls instead of 30 dolls, you know. And Maybe the two dolls will cost a couple of bucks more.”
Mattel CEO Ynon Kreiz
told CNBC that, despite the tariffs, manufacturing abroad is “efficient and more productive” than relocating to the U.S.
He continued: “80 percent of toy production globally happens in China. The Toy Association has stated that many companies are exposed to potential risks. If the current situation continues, there will be significant disruption in the industry. We support the Toy Association’s advocacy for zero tariffs on toys to ensure that safe and affordable products remain accessible to everyone.”
Toy Association CEO Greg Ahearn told CNN
: “A 145 percent tariff is tough on any industry, but ours is truly unique from the standpoint that 96 percent of the manufacturers here in the U.S. are considered small- or medium-sized businesses. So when you think about these businesses, and a 145-percent tariff being put on them, it’s untenable for them.”
What Happens Next?
The toy industry and individual companies await the outcome of their push for a tariff exemption.
kacanginka
has reached out to the Commerce Department regarding the possibility of a tariff exemption for toys.
Update 05/07/25 5:15 a.m. ET: This article was updated with a response from Mattel.
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