The toy company Mattel plans to increase the prices of its products in the United States in response to the tariff policy imposed by the government of Donald Trump. Additionally, the company plans to diversify its supply chain to rely less on China. These plans were revealed by Mattel's CEO, Ynon Kreiz, in an interview with CNBC.
Regarding the impact of the tariffs on Mattel, the company reported that its losses nearly tripled in the first quarter, reaching 40 million dollars, and withdrew its forecasts for the year due to the macroeconomic environment and the tariff situation in the United States. Although tariffs did not affect the company's figures during that period, Kreiz is already taking steps to mitigate their impact, including raising prices for products sold in the United States.
In addition to raising prices, Mattel plans to optimize its supply chain with particular attention to China, a country on which the United States imposes tariffs of 145%. The company aims to reduce its imports from China to 15% by 2026. Despite these decisions, executive Kreiz dismissed the idea that all of the company’s production will move to the United States. He emphasized the importance of production in other countries to offer quality products at affordable prices, while design, development, product engineering, and brand management are carried out in the United States.
