• Mattel will increase U.S. toy prices due to higher costs from tariffs.
• The company plans to reduce imports from China and diversify its manufacturing base.
• Mattel withdrew its annual sales forecasts amidst tariff uncertainties.
• Approximately 20% of Mattel's U.S. products are sourced from China.
• Competition remains strong as other toy makers manage similar tariff impacts.

Mattel, the maker of Barbie dolls and other popular toys, announced plans to raise prices on certain products sold in the U.S. in response to increased costs from President Donald Trump's tariffs. The company stated, "Given the volatile macroeconomic environment and evolving U.S. tariff landscape, it is difficult to predict consumer spending and Mattel's U.S. sales in the remainder of the year and holiday season," highlighting the challenges posed by the trade environment, according to Reuters and HuffPost.

The company imports about 20% of its toys from China and plans to reduce this figure to below 15% by next year as part of its strategy to mitigate tariff impacts. Mattel indicated that tariffs could result in an estimated $270 million in additional costs this year, and it aims to offset these expenses through various cost-saving measures, according to BBC and Reuters.

The manufacturer's CEO, Ynon Kreiz, emphasized that the company is speeding up its diversification strategies by moving more production outside of China. "For some highly sought-after toys, we will enlist factories in more than one country," he noted, indicating a proactive approach to supply chain management amidst geopolitical tensions, according to HuffPost and BBC.

As Mattel navigates this uncertain landscape, it has temporarily withdrawn its sales forecasts due to the unpredictability of consumer behavior linked to the tariffs. The U.S. accounts for about half of Mattel's global sales, making these adjustments crucial for the company's financial outlook moving forward, according to Reuters and HuffPost.