Barbie, Hot Wheels Toys Could Soon Cost More as Trump Tariffs Concerning China Take Effect

On Feb. 4, President Donald Trump enacted a broad 10% tariff on goods coming from China, in addition to any additional tariffs already in existence concerning imports from that nation.

Now, as CNBC reported, toymaker Mattel — famous for its Barbie and Hot Wheels brands, among others — has signaled that price increases on toys could be coming in the near future as a response to Trump’s tariffs. Mattel currently sources about 40% of its products from China, and a bit less than 10% from Mexico.

Both Mexico and Canada were facing the imposition of 25% tariffs from the Trump administration, but both nations achieved a 30-day pause on said tariffs due to agreements made with the United States concerning border security.

Mattel CEO Can’t Rule Out Price Increases on Barbie, Hot Wheels, Other Toys Over Tariff Costs

During an interview held on Feb. 4, Mattel CEO Ynon Kreiz indicated that passing on the cost to consumers may ultimately be part of the company’s plan to mitigate the effect of the tariffs.

“As we look to take mitigating actions, it starts with our supply chain, but pricing action is also one of the options we’re looking at,” Kreiz said, per Bloomberg.

“We’ll work very closely with our retail partners and make sure with have the right variety of products available at affordable price points,” he added.

The news comes on the heels of mildly encouraging earnings for Mattel. The company reported a 1.6% increase in revenue to $1.65 billion, and earnings per share rose 35 cents, beating analyst expectations of 20 cents. Further, attention paid to cost controls lifted gross margins to more than 50%, as Bloomberg outlined.

However, a bit of a slump in toy sales overall meant an overall sales dip of 1.1% over the entire year. Hot Wheels was leading the way in terms of boosted sales, while the Barbie merch bump created by the 2023 film appeared to have slowed.

US Toy Business Overall Could Be Hampered by Tariffs

According to CBS News, the incoming tariffs could hamper American toy retailers at large.

Industry group The Toy Association stated that 80% of U.S. toys are made in China, representing the vast majority of all toys sold on store shelves nationwide.

This is of particular concern for independent toy retailers, such as Mischief Toy Store located in St. Paul, Minnesota.

“We’re going to suffer as a small business, but so is everyone in this country,” said Dan Marshall, co-owner of Mischief Toy Store, a family-run operation.

“If we have to raise prices, we will. But obviously, we’re trying to bring in products now, earlier in the year so we don’t have to do that, but we have no idea and that’s part of the problem,” he added.

Lastly, The Toy Association gestured toward safety concerns over the tariffs, as price increases could lead parents to purchase knock-off toys or imitation toys that have not been properly tested for safety.

“We want to make sure American kids continue to experience the immeasurable benefits of play, while having fun and staying safe. We hope that as negotiations continue to unfold, toys will be exempted from any potential tariffs,” the association wrote in a statement.