Mattel Hikes Prices 20% Due to U.S. Tariffs, Calls for Zero Tariffs on Toys

Mattel, the prominent toy manufacturer, has announced its decision to increase prices on its products sold in the United States. This move is a direct response to the escalating costs resulting from the current tariff policies implemented by the U.S. government. The company has indicated that it will adjust prices "as necessary" to mitigate the financial impact of these tariffs.

Mattel's CEO, Ynon Kreiz, has underscored the significant disruption caused by the tariffs within the toy industry. Many companies have been forced to halt production and shipments to the U.S. market due to the financial strain. The tariffs, which primarily affect products manufactured in China, have a substantial impact on mattel, as approximately 20% of its U.S. sales come from products made in China. This vulnerability has led the company to withdraw its financial forecasts for the year, citing the unpredictable nature of the tariff policies.

In addition to raising prices, Mattel has advocated for the implementation of zero tariffs on toy products. The company's CEO has expressed support for the proposal by the Toy Association, which calls for zero tariffs on toys. This measure, according to Kreiz, would enable more children and families to access play, thereby fostering a more inclusive and supportive industry environment. The current tariff situation has created chaos within the industry, with many companies struggling to adapt to the new financial landscape.

The price increases are expected to affect a wide range of Mattel's products, including its iconic Barbie dolls. The company has stated that it will continue to monitor the situation closely and make necessary adjustments to ensure the sustainability of its business operations. Despite the challenges posed by the tariffs, Mattel remains committed to providing high-quality toys to consumers while advocating for policies that support the industry's growth.

Mattel has also announced plans to reduce promotional activities and discounts to save costs, increasing its cost-saving target for the year from $60 million to $80 million. The company imports a significant portion of its products from countries such as Indonesia, Malaysia, and Thailand, which have also been affected by the tariffs imposed by the U.S. government. Although these tariffs were temporarily suspended for 90 days, the uncertainty surrounding their future implementation continues to pose challenges for the company.

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