Mattel Rules Out U.S. Toy Manufacturing Amid Tariffs

Mattel CEO Ynon Kreiz explained that the 145% China tariffs imposed by Trump will not cause toy manufacturing to move to the United States because design and engineering functions remain domestic. The company maintains overseas production to deliver affordable quality toys while China’s sourcing percentage will decrease below 40% by year-end and no nation will surpass 25% by 2027. Mattel removed its 2025 guidance while planning price increases to absorb tariff expenses while maintaining 40-50% of its toys at prices under $20. The stock value decreased by 19% since April when the tariff announcement was made. The company must find a balance between price and value according to Kreiz yet analysts predict higher costs will reduce customer demand. The supply chain diversification strategy at Mattel aims to reduce trade war effects but consumer spending continues to be a major issue.