Barbie maker warns Trump tariffs may drive up prices

Reuters

Toy making giant Mattel says it may increase its prices in the US to make up for the impact of tariffs imposed by Donald Trump.

It comes after the US President imposed 10% tariffs on all imports from China, where just under 40% of the firm's production is based.

On top of potential price increases, the maker of Barbie and Hot Wheels says it could have to implement changes to its supply chain.

Consumer and business groups in the US have warned that the tariffs may disrupt supply chains and lead to higher prices.

"Guidance includes the anticipated impact of new US tariffs... announced on February 1st, and mitigating actions we plan to take, including leveraging the strength of our supply chain, and potential pricing," Mattel said in its quarterly report.

The toy industry has been facing slower sales in 2024, as a higher cost of living meant shoppers had less cash to spend on toys.

Despite this, Mattel's shares jumped by 10% in extended trading in New York, after the company forecast better profits for next year than had been expected by Wall Street analysts.