Appears to be like like President Donald Trump is lastly getting his want: Children will likely be getting fewer dolls this 12 months.
On Monday, Mattel—the maker of Barbie and Sizzling Wheels—introduced it might increase toy costs within the U.S. in response to Trump’s sweeping tariffs. The warning got here simply someday after Trump doubled down on his declare that American youngsters don’t want greater than a handful of dolls.
Whereas tariffs didn’t dent Mattel’s earnings within the first quarter of 2025, the corporate mentioned it might start “pricing action” within the U.S.—Wall Avenue’s means of claiming to count on worth hikes.
Mattel additionally joined a rising record of corporations which have paused their full-year steerage, citing a “volatile macroeconomic environment and evolving U.S. tariff situation.”
“It is hard to predict consumer spending in our sales in the U.S. in the remainder of the year and the holiday season, so we are pausing guidance until we have sufficient visibility,” Mattel CEO Ynon Kreiz mentioned.
Translation: Trump’s erratic commerce warfare might flip Barbie dolls into luxurious items.
His new 145% tariffs on most Chinese language imports are hammering the toy business. In keeping with the Toy Affiliation, roughly 80% of toys offered within the U.S. are made in China. Mattel says 20% of its toys offered listed here are China-made—nevertheless it’s scrambling to chop that to below 15% by 2026 and beneath 10% by 2027.
That doesn’t imply manufacturing is coming again to the U.S., as Trump may hope. Kreiz advised CNBC on Tuesday that even with tariffs, it’s nonetheless cheaper to fabricate toys abroad.
Different toy makers are getting ready for worth hikes, too. Kreiz mentioned Monday that he hoped 40% to 50% of Mattel’s toys would keep below $20, however he pushed again laborious on Trump’s insurance policies.
“Zero tariffs for toys gives the greatest number of children and families access to play,” he mentioned.
Kreiz is pleading with a president who’s mentioned—twice now—that youngsters can stay with fewer toys. This, as Trump prepares a multimillion-dollar military-style birthday parade in Washington, D.C., for his birthday on June 14.
The Toy Affiliation has warned of attainable shortages earlier than Christmas. A survey of practically 400 small toy companies discovered that 64% are canceling orders, and practically half (46%) say they might go below inside weeks or months if the tariffs stick.
Trump’s erratic tariff insurance policies have been a mess of delays, stroll backs, and wild additions, together with a latest proposal to tax overseas movies. And now the toy business, as soon as flying below the radar, is squarely within the highlight.
“Maybe the children will have two dolls instead of 30 dolls,” Trump mentioned at a latest Cupboard assembly. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
This comes from a person who campaigned on quick financial aid—however now tells Individuals to endure the ache of his financial experiments.
Toys are simply one among many issues getting dearer. Automobiles, flowers, groceries—they’re all going up too.
