Mattel, the maker of Barbie dolls, is facing the impact of Donald Trump’s tariffs, leading to a decision to raise prices on select products in the US. With the US accounting for half of Mattel’s global toy sales and about 20% of its goods being imported from China, the company is looking to decrease its reliance on Chinese imports to below 15% by 2026. The uncertain economic landscape prompted Mattel to withdraw its annual financial targets, citing challenges in predicting consumer spending and US sales for the rest of the year.

In response to the tariffs, Mattel is implementing pricing adjustments in its US operations as needed. Similarly, Ford anticipates $1.5 billion in tariff-related costs this year, with overall expenses expected to rise by $2.5 billion due to increased import costs from Mexico and Canada, though cost-cutting measures are planned to offset some of these expenses.

The escalating trade tensions between the US and China have led to significant tariff hikes, impacting industries and supply chains globally. Mattel’s CEO expressed support for zero tariffs on toys and outlined plans to diversify its supply chain by increasing production in India for the Uno card game and redirecting Chinese products to international markets.

Despite the challenges posed by tariffs, Mattel aims to mitigate the anticipated $270 million in additional costs this year through strategic actions. Analysts recognize that the company is caught in the crossfire of the tariff war initiated by the Trump administration, affecting its targeted sales growth.