PRICES for the iconic Barbie doll are climbing as Mattel cites Trump tariffs and supply chain shifts.
President Trump had previously warned that children’s toys could see price hikes.
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Mattel, the toy manufacturing giant behind iconic brands like Barbie and Hot Wheels, says it plans to raise prices on toys sold in the US.
The inflation is due to new tariffs stemming from President Donald Trump’s trade war with China.
Mattel revealed the news in its earnings report Monday, indicating that the cost of toys could soon increase for millions of American families.
Trump, who reinstated sweeping tariffs earlier this year, recently stated that dolls might cost “a couple bucks more.”
That projection is already happening in real time.
According to a pricing analysis by Telsey Advisory Group, a Barbie doll in a swimsuit at Target jumped 42.9% in just one week in April.
It now retails for $14.99.
While Mattel said tariffs hadn’t affected its first-quarter earnings, the company is planning ahead to mitigate future losses.
“Where necessary,” it said, the company would be “taking pricing action in its US business.”
This means that the company plans on raising prices.
Mattel’s Chief Financial Officer Anthony DiSilvestro estimated the current tariff impact at roughly $270 million for 2025.
“That’s before you consider any of the mitigating action,” he added during the company’s earnings call.
With nearly 80% of all US-sold toys manufactured in China, the new 145% tariff rate is hitting the industry hard.
To soften the blow, Mattel is accelerating efforts to diversify its supply chain.
CEO Ynon Kreiz said the company currently sources products from seven different countries.
Now, it plans to relocate the manufacturing of 500 toys away from China.
He noted that China’s share of Mattel’s global production is expected to drop to under 40% in 2025.
This figure is significantly lower than the 80% average across the industry.
“Zero tariffs for toys gives the greatest number of children and families access to play,” Kreiz said.
By 2026, Mattel aims to slash US imports from China to below 15%, and to less than 10% by 2027.
Still, the company warned that uncertainty lies ahead, particularly around the holiday season.