Barbie maker Mattel warns Trump tariffs may drive up prices

Published On Feb 4, 2025, 7:29 PM

Mattel, the maker of Barbie, is contemplating price increases in the U.S. due to new tariffs imposed by Trump, which stands at 10% on Chinese imports, where about 40% of its production occurs. There are concerns from consumer groups and trade experts that these tariffs will elevate costs and disrupt supply chains. Despite these challenges, Mattel's shares rose by 10% in after-hours trading following forecasts of better-than-expected profits for next year. The toy industry is already under pressure from slower sales due to rising living costs affecting consumer spending. Mattel's ability to absorb increased costs without raising prices is questioned as existing tariffs could accumulate to as much as 35%.