Mattel Inc., the maker of Barbie dolls, Hot Wheels cars and other popular toys, said it would have to raise prices for some products sold in the U.S. “where necessary” to offset higher costs related to President Donald Trump’s tariffs.
The El Segundo, California-based company said the increases are necessary even though it is speeding up its plans to diversify its manufacturing base away from China. Trump imposed a 145% tariff on most Chinese-made products.
Company executives told analysts on a conference call that China currently accounts for 40% 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% to 50% of its toys will cost customers $20 or less.
