Mattel CEO Warns of Price Increases on Toys Due to Tariffs, Trump Says Dolls Could Perhaps Cost ‘a Couple of Bucks More’

In the midst of an ongoing tit-for-tat tariff war kicked off by President Donald Trump’s imposition of trade barriers designed to reshore manufacturing stateside, toy companies — and one in particular, Mattel — are now speaking out regarding the measures.

According to Mattel CEO Ynon Kreiz, toys are “an essential part of children’s lives,” and unfortunately, a part that may become more expensive for parents (and adult collectors) to afford in the immediate future.

Kreiz told CNBC during a May 6 interview that while Mattel remained “committed to the uninterrupted supply of quality products at a wide range of affordable price points,” the realities created by the president’s tariff policy meant that many of its products — the company is perhaps most famous for its Hot Wheels and Barbie properties — would be subjected to price hikes.

“Where necessary, we will be taking pricing action in the U.S.,” Kreiz added.

And despite Trump’s projection of a return of manufacturing to the U.S. as a primary outcome of the tariffs, Kreiz suggested that Mattel was skeptical of that scenario occurring, at least in the toy business.

“We don’t see that happening,” Kreiz said, before pivoting to emphasize the part of the process that was conducted in the United States.

“We need to remember that a significant part of toy creation happens in America. Design, development, product engineering, brand management all happens in America. Making product, producing product in other countries, allows us to create quality products at affordable price points,” he added.

For his part, Trump also made headlines after making remarks related to the embattled U.S. toy industry during a cabinet meeting last week.

“Maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple of bucks more than they would normally,” the president said at the time.

Mattel Could Be In for a Bumpy Road Ahead

With Mattel stock having shed more than 18% of its value since April 2, when Trump announced a slew of wide-ranging tariffs, analysts remain concerned about the company’s prospects in the days to come. NBC News quoted a senior analyst for Mintel, Brian Benway, on the subject.

“Consumers are extremely price-sensitive when it comes to toys,” said Benway.

“If you’re talking about a 145% tariff, that’s doubling the cost of a toy at Walmart or Target. I don’t know how average consumers are going to react to a $20 toy suddenly being $40 just because someone said so. Probably not great,” he added.

According to The Toy Association, approximately 80% of toys in the U.S. retail market are sourced from China. For its part, Mattel guessed that less than 20% of its total toy production currently takes place in China, and the toymaker also indicated that it is accelerating plans to further diversify its international supply chain.