Trump threatens 100% tariffs on Mattel's toys if production moves abroad

In the United States, President Donald Trump escalated tensions with toy company Mattel by threatening a 100% tariff on its products. This action followed a company announcement to raise U.S. toy prices due to existing tariffs imposed on Chinese imports. Mattel, known for iconic toys like Barbie and Hot Wheels, sources 40% of its products from China and plans to relocate some production abroad. However, CEO Ynon Kriez indicated the likelihood of not moving operations to the U.S. Following Trump's announcement, he reiterated the potential tariff defining it as a retaliation against Mattel's decisions. The broader context of this situation is rooted in a significant trade war between the U.S. and China which originally saw tariffs as high as 145% imposed on most Chinese imports by the Trump administration in April 2025. The American toy sector has been particularly affected by these tariffs, as nearly 80% of toys sold in the U.S. are manufactured in China. The effects of the tariffs have started to jeopardize small businesses like Kip's Toyland in Los Angeles, which has been operational for almost 80 years. They are now facing potential price hikes and reduced inventories as suppliers communicate impending tariff impacts. As toys produced in China become more expensive, retailers across the U.S. fear losing customers who may not afford the increased prices. This not only threatens the existence of small toy shops but also reflects how deeply interconnected the supply chains are, built over decades on lower labor costs in China. The complexity of shifting these supply chains back to the U.S. is underscored by the estimates that rebuilding a toy manufacturing infrastructure would take a minimum of five years. Moreover, the trade war has prompted a reaction from consumers who express concern over rising prices and the dwindling options available for affordable toys. Individuals are beginning to notice the consequences on their purchasing ability and the unique landscape of local toy stores. Meanwhile, Trump’s insistence on tariffs is an attempt to revive American manufacturing but may inadvertently harm local businesses and consumers, as the industry copes with the new reality.