Mattel exec warns of price hikes for Barbie dolls and Hot Wheels toys under Trump's China tariffs

Prices for Barbie dolls and Hot Wheels are expected to ascent arsenic tariffs imposed connected goods produced successful China take effect. 

Mattel Chief Financial Officer Anthony DiSilvestro issued a blunt informing implicit the interaction taxation hikes would person connected the company, which manufactures 40 percent of its toys successful China and astir different 10 percent successful Mexico. 

President Donald Trump's 10 percent goods from China, arsenic good arsenic the imaginable 25 percent tariff connected goods made successful Mexico and Canada, whitethorn unit Mattel to re-evaluate its terms points. 

'Changes successful the amount, scope and quality of the tariffs successful the future... could summation Mattel's merchandise costs and different costs of doing business,' Mattel said citing results of its 2024 fiscal report.

'Other changes successful laws oregon regulations successful the United States and/or successful different large markets, specified arsenic China, successful which Mattel operates... whitethorn besides summation Mattel's merchandise costs and different costs of doing concern and successful each lawsuit trim Mattel's net and liquidity.'

The fresh US levies connected Chinese goods volition impact astir 20 percent of Mattel's planetary production, the artifact institution CFO said successful an net telephone with analysts connected Tuesday.

'Certainly against the tariff, we person a scope of mitigating actions, including adjusting proviso chains and terms increases,' DiSilvestro said.

DiSilvestro added that Mattel officials 'always support consumers successful mind' erstwhile considering changing the prices of its goods and enactment with the toy-maker's retail partners to 'achieve the close balance.' 

'We bash enactment intimately with our retail partners to execute the close equilibrium and ever support consumers successful caput erstwhile we see pricing actions,' DiSilvestro added.

'Pricing is comparatively casual to instrumentality successful the artifact manufacture due to the fact that astir 80 percent of the items are caller successful immoderate fixed year,' DA Davidson expert Linda Bolton Weiser told the New York Post. 'Kids privation what they privation careless of price.'

The expert added she expects Mattel 'will question concessions from suppliers arsenic good and they person a batch of powerfulness to negociate due to the fact that they are truthful big.' 

However James Zahn, exertion of Toy Insider, said: 'Any tariff is atrocious for the artifact business.'

The artifact adept claimed 'the margins are already bladed and retailers are pushing artifact manufacturers to devour the bulk of it.'

'At the extremity of the day, prices volition spell up - there's nary mode astir that. And, should Mexico go a people again, that volition interaction Mattel straight arsenic they've already nearshored immoderate accumulation to Mexico,' Zahn added.

Trump, 78, imposed a 10 percent tariff summation connected goods imported from China, earlier this week, but delayed executive orders imposing 25 percent tariffs connected goods produced successful Mexico and Canada for 30 days.

About 80 percent of each toys are made successful China. Despite this, the artifact manufacture remains hopeful that the Trump medication volition 'carve retired an exemption' for toys arsenic it did during the president's archetypal term.

Meanwhile, it's not wide erstwhile oregon if Mattel volition rise prices but it won't assistance boost sagging income of Barbie.

The company's signature doll grew by leaps and bounds successful caller years, fueled successful portion by the Barbie movie successful 2023, but past twelvemonth income began to dilatory down.

During the important vacation season, Mattel's income grew by 1 percent successful the 4th fourth successful the US, fueled by enactment figures and Hot Wheels.

Gross billings for dolls worldwide were down 8 percent, chiefly owed to declines successful Barbie, the institution said connected Tuesday.