Are you a Barbie collector or do you buy the doll for your daughter? Then we’ve got bad news for you. Mattel, the company behind the iconic doll that has been a part of childhood for decades, has just announced that it will be raising the price of Barbie and other toys due to newly imposed tariffs. Here’s everything we know about it.
Why is Mattel raising the price of the Barbie doll?
In its latest earnings report, the company stated that, following new trade policies implemented by the Donald Trump administration, it is now operating in an uncertain macroeconomic environment with significant volatility. As a response to these tariffs, one of the measures Mattel will take is to raise the prices of its toys in the United States.
Anthony DiSilvestro, Mattel’s Chief Financial Officer, noted that the company estimates less than 40% of its total production this year will come from China. This is part of the company’s broader effort to diversify its supply chain and reduce its dependence on Chinese manufacturing.
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How much will the Barbie doll cost?
The company has not disclosed the new price of the Barbie doll or the final prices of its other toys. However, it did indicate that between 40% and 50% of its products will be priced at around $20.
What brands are owned by Mattel?
With 80 years of history as a global leader in toys and family entertainment, Mattel owns one of the most iconic brand portfolios in the world. Some of its most popular brands include:
- Barbie
- Hot Wheels
- Fisher-Price
- American Girl
- Thomas & Friends
- UNO
- Masters of the Universe
- Matchbox
- Monster High
- MEGA
- Polly Pocket
Why are the United States and China in a tariff war?
It all began on February 1, when U.S. President Donald Trump announced a 10% tariff on all imports from China, as well as the elimination of the de minimis exemption, which had allowed the Asian country to make certain tax-free imports.
Later, on April 2, Trump ordered a 10% tariff on imports from all countries. Two days after that, China responded by imposing a reciprocal 34% tariff on all U.S. imports.
That was just the beginning. On April 8, Donald Trump increased the tariff on Chinese goods to 84% and reiterated his plan to eliminate the de minimis exemption on May 2. China did not remain idle—it then announced an 84% tariff on U.S. imports. The Trump administration responded by raising its tariffs on Chinese goods to 125%, and China matched the figure with its own 125% tariff on U.S. products. Finally, the tariffs were set at 145%.
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What are tariffs?
Tariffs are taxes imposed on the import of goods. These tariffs benefit locally manufactured products by giving them a competitive price advantage over similar imported products. They also represent a source of revenue for governments.
Why is Donald Trump imposing tariffs?
President Donald Trump has stated that tariffs are a key component of his economic strategy, as he seeks to promote manufacturing in the U.S., protect jobs, increase tax revenues, and stimulate economic growth.
Trump aims to revitalize and rebuild the U.S. manufacturing industry, which has lost many jobs over the past 40 years, largely due to the transfer of these jobs to countries with lower wages, such as Mexico or China. Additionally, the president believes that the U.S. is facing a significant trade deficit and that other nations are taking advantage of the opportunity to sell their products to U.S. consumers.
