Barbie maker Mattel set to raise prices due to Trump's tariffs
Mattel, the maker of Barbie dolls and other popular toys, has said it will have to raise prices for some products sold in the US to offset higher costs related to President Donald Trump’s tariffs.
The California-based company said the increases are necessary even though it is speeding up plans to diversify its manufacturing base away from China. Mr Trump has imposed a 145 per cent tariff on most Chinese-made products.
Company executives told analysts on a conference call that China accounts for 40 per cent of Mattel’s global production.
The company plans to move roughly 500 products this year from manufacturers in China to sources in other countries, compared to 280 products last year.
For some highly sought-after toys, Mattel said it would enlist factories in more than one country. To prevent possible shortages, the company said it was focusing on getting products to stores without interruptions.
The company said that even with price increases it expects 40 per cent to 50 per cent of its toys will cost customers $20 (£15) or less.
“The diversified and flexible supply chain in global commercial organisations are clear advantages to Mattel in this period of uncertainty,” CEO and chairman Ynon Kreiz told analysts.
Citing the ongoing uncertainty surrounding the President’s trade policies, Mattel withdrew its annual earnings forecast. The company said it would be “difficult to predict” consumer spending and the company’s US sales for the remainder of the year without more information.