Barbie toymaker to raise prices in US due to high tariffs

LOS ANGELES - Mattel, the US toymaker of Barbie dolls, said Monday it is pausing its full-year financial forecast due to sweeping US tariff hikes and may increase prices on some toys sold in the country.

"The volatile macroeconomic environment and evolving US tariff landscape makes it difficult to predict consumer spending and Mattel's US sales in the remainder of the year and holiday season," Mattel Chairman and CEO Ynon Kreiz said during the company's first-quarter earnings call.

To offset higher costs related to high tariffs, the California-based company said price increases on toys are "necessary".

Mattel executives said the toymaker had joined the rest of the toy industry in lobbying for zero tariffs on toys, but it must prepare for what is likely to be a long period of high tariffs on goods made in China and other economies. China currently accounts for 40 percent of Mattel's global production.

"Toys are foundational to a child's growth and development," Kreiz said. "Zero tariffs for toys give the greatest number of children and families access to play."

The US toy industry is increasingly concerned about the impact of Washington's high tariffs. The country imports about 80 percent of all its toys from China, according to data from the Toy Association.