Tariffs may force the company to increase prices on its toys.
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00:00After President Trump acknowledged his new trade policies could wind up increasing the price of
00:04some toys, Barbie maker Mattel confirmed the remarks. While the company says newly implemented
00:09tariffs didn't affect its first quarter numbers, Mattel admitted it would be looking for supply
00:13chain options outside of China. The company also said it would be taking pricing action in its U.S.
00:18business if necessary. On its earnings call, Mattel revealed that the current tariffs would
00:22add around $270 million to the company's costs this year. Despite having no impact in Q1,
00:29Mattel's CEO pushed back against the tariffs, saying zero tariffs for toys gives the greatest
00:33number of children and families access to play. The current 145% tariffs on goods coming from China
00:39is taking a heavy toll on the toy industry as a whole. Roughly 80% of all toys sold in the U.S.
00:44are made in China, according to industry group Toy Association. And according to the Commerce
00:49Department, more than 13 of the nearly $18 billion worth of toys imported into the U.S. in 2024 came
00:55from the region. That'll do it for your daily briefing. From New York City, I'm Kelsey Barberio
00:59with the street.