Barbie maker Mattel warns Trump tariffs may drive up prices

Global toy giant Mattel Inc. has stated that it may raise prices on its products in the U.S. market to cope with the impact of tariffs imposed during the tenure of former U.S. President Donald Trump. Previously, the Trump administration levied a 10% tariff on all imported goods from China, where nearly 40% of Mattel's production facilities are located. This decision underscores the significant impact of trade policies on multinational corporations.

In addition to potential price increases, the maker of Barbie dolls and Hot Wheels toys has also indicated that it may have to adjust its supply chain. U.S. domestic consumers and business groups have previously warned that tariffs could disrupt supply chains and lead to higher prices, which would ultimately be passed on to consumers. These adjustments are crucial for maintaining profitability and market competitiveness.

Mattel noted in its quarterly report: "Company performance expectations already include the impact of the new tariffs announced by the U.S. on February 1, as well as the countermeasures we plan to take, including leveraging our strong supply chain and potential pricing strategies." This demonstrates that Mattel is actively seeking various ways to mitigate the negative impact of the tariffs, including optimizing their supply chain and strategically adjusting prices.

The toy industry is facing a slowdown in sales in 2024, as rising living costs have reduced the amount of money consumers have available to spend on toys. Despite this, Mattel's stock rose 10% in after-hours trading in New York, as the company's profit forecast for next year exceeded Wall Street analysts' expectations. This positive market reaction reflects investor confidence in Mattel's ability to navigate the challenging economic environment.

John Murphy, head of international affairs at the U.S. Chamber of Commerce, said over the weekend that Trump's tariff plan would only "raise prices for American families and disrupt supply chains." This week, Trump suspended plans to impose a 25% tariff on imported goods from Canada and Mexico, but continued to impose a 10% tariff on goods made in China. The Chamber of Commerce continues to advocate for policies that promote free trade and avoid unnecessary economic burdens on consumers and businesses.