Mattel to hike prices on Barbie, Hot Wheels, other toys to offset Trump tariff costs

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Mattel Inc. to Raise Prices Due to Trump’s Tariffs

Mattel Inc., known for iconic toys like Barbie dolls and Hot Wheels cars, announced on Monday that it will be increasing prices on some products in the US to offset the higher costs incurred due to President Trump’s tariffs.

Despite accelerating its plans to diversify manufacturing away from China, the El Segundo, California-based company deemed the price hikes necessary following the 145% tariff imposed by Trump on most Chinese-made products.

Amid the ongoing uncertainty surrounding the president’s trade policies, Mattel decided to withdraw its annual earnings forecast, citing difficulties in predicting consumer spending and US sales for the remainder of the year.

Mattel said increases are necessary even though it is speeding up its plans to diversify its manufacturing base away from China. 8th – stock.adobe.com

While reporting larger-than-expected first-quarter sales of $827 million, Mattel also reported a wider loss. Sales saw a 2% increase for the quarter ending March 31, but the company’s loss expanded to $40.3 million, or 12 cents per share, compared to $28.3 million, or 8 cents per share, in the same period last year.

Analysts had predicted a loss of 10 cents on sales of $786.1 million for the first quarter.