Toy manufacturer Mattel has declared its intention to potentially raise prices in the United States in response to the ramifications of President Donald Trump's tariffs. The decision follows the imposition of 10% tariffs on all imports from China, where nearly 40% of the company's production is centered.
In addition to the possibility of price hikes, the producer of Barbie and Hot Wheels has indicated the need for adjustments to its supply chain. Both consumer and business organizations in the United States have cautioned that these tariffs could disrupt supply chains and result in increased prices.
Guidance involves the expected effects of the new US tariffs announced on February 1st, along with the measures we intend to implement, such as optimizing our supply chain and potential pricing adjustments, stated Mattel in its quarterly report.
With the toy industry experiencing sluggish sales in 2024 due to a rising cost of living limiting consumer spending on toys, Mattel's shares surged by 10% in after-hours trading on the New York Stock Exchange. The company outperformed Wall Street analysts' profit expectations for the upcoming year.
Commenting on the situation, John Murphy, the head of International at the US Chamber of Commerce, criticized Trump's tariff strategy, warning that it will raise prices for American families and disrupt supply chains.