The tariffs imposed by the Trump administration have hit the Barbie-maker hard, forcing the company to withdraw its annual financial guidance and raise prices on several products. It’s a necessary move that reflects the growing strain on an already pressured industry.
In an interview, CEO Ynon Kreiz emphasized that the current macroeconomic uncertainty and new U.S. trade policies make it impossible to deliver reliable sales forecasts. Navigating such a volatile environment, he noted, is a continuous challenge.
Mattel, which generates about half of its global revenue in the U.S., announced plans to reduce imports from China by 15% by 2026. The decision, driven by Washington’s steep tariffs on Chinese goods, requires a significant overhaul of its supply chain. As part of this shift, production of the popular card game UNO has been moved to India, and shipments from China are now increasingly directed to international markets.
The outlook presented by the company is far from reassuring: tariffs are expected to increase costs by around $270 million. However, immediate countermeasures are being implemented, aiming to recoup $80 million through cost-saving initiatives. These include cutting back on promotions and raising prices on some of its most sought-after products.
The situation has been further complicated by ambiguous and provocative political statements, such as a recent comment by a GOP leader joking that American girls may have to “settle” for two Barbies instead of thirty. In this uncertain climate, Mattel has responded firmly, reaffirming its share buyback program with a goal of reaching $600 million by 2025—a move intended to boost market confidence and reassure investors.
Despite the challenging backdrop, there are glimmers of resilience. First-quarter net sales reached $827 million, significantly beating analyst expectations, and earnings per share losses came in lower than anticipated.
As noted by Zak Stambor, an analyst at Emarketer, Mattel, while heavily affected by the trade war, stands as a clear example of how large multinational companies are working to adapt to a globalized world increasingly fragmented by protectionist policies.
Looking ahead, the iconic brand is gearing up to diversify its production and tackle the commercial challenges ahead with focused, adaptive strategies.
