While the cost of nostalgia may not be calculable, the cost of tariffs is. And because of them, several popular toys, including the iconic Barbie doll, may soon get more expensive at the store.
After President Donald Trump’s 10% tariff on United States imports from China went into effect on Tuesday, the toy giant Mattel shared that it may have to increase prices on its top items to compensate for the expenses.
Anthony DiSilvestro, the company’s Chief Financial Officer, shared during an earnings call with Wall Street analysts on Tuesday that nearly 40% of its toys are made in China and will now be affected by the tariffs.
DiSilvestro shared that to combat the extra tax, Mattel has a “range of mitigating actions,” which could include “potential price increases.”
“We do work closely with our retail partners to achieve the right balance and always keep consumers in mind when we consider pricing actions,” DiSilvestro added.
Mattel will also see a more substantial impact on its business if the 30-day pause on the 25% tariff on goods imported from Mexico runs out, as the company produces almost 10% of its products there.
Among the items that could be affected by price increases include the aforementioned Barbies, Hot Wheels, numerous action figures, stuffed animals, board games, baby toys, and more.
Mattel CEO Ynon Kreis also spoke during the call, sharing that demand for dolls and baby gear fell, though the dolls dropped due to the massive increase they saw in the year prior because of the movie’s release. Overall, the company still surpassed expectations in the fourth quarter, executives shared on the call.
As the threat of tariffs continues to loom, many worry about the economic impact it could have on everyday Americans.
According to an estimate from the non-partisan group the Tax Foundation, Trump’s tariffs could result in an average tax increase of $830 per household in the US.