New York — The ongoing trade dispute between the United States and China is beginning to take a noticeable toll on American consumers, particularly regarding the prices of popular toys. Last week, former President Donald Trump indicated that these tariffs could lead to higher costs for household items, a prediction that is now manifesting in the toy aisle.

Toy industry giant Mattel has announced plans to increase prices on its products, which include the globally recognized Barbie dolls. The company revealed this strategy in its recent earnings report, highlighting that tariffs imposed on Chinese imports are a significant factor affecting its pricing structure.

Though Mattel reported stable earnings for the first quarter of the year, it is taking proactive steps to offset potential losses. The company aims to diversify its manufacturing locations and adjust pricing in the U.S. market as needed. This strategic pivot reflects the pressures faced by many companies as they navigate the complexities of international trade.

The impact of the trade war is especially pronounced within the toy sector, where nearly 80% of products sold in the U.S. are sourced from China. According to Mattel’s Chief Financial Officer Anthony DiSilvestro, the existing tariffs could cost the company around $270 million this year, before factoring in any measures to mitigate these losses through pricing adjustments.

Recent market analyses indicate that some toy prices are already on the rise. For instance, a Barbie doll’s price surged nearly 43% at a major retailer in mid-April, a clear sign of growing consumer costs. Despite these challenges, Mattel’s Chief Executive Ynon Kreiz expressed optimism that a significant portion of their products could still be priced at $20 or less.

Kreiz also advocated for the elimination of tariffs on toys, emphasizing that reducing these fees would enhance accessibility to play for children and families. “Zero tariffs for toys gives the greatest number of children and families access to play,” he stated, reflecting a vision for broader affordability in the market.

In a strategic shift, Mattel plans to lower its dependence on Chinese manufacturing. Kreiz estimated that less than 40% of the company’s global production would originate from China by 2025, a stark contrast to the industry average. The company aims to decrease its U.S. imports from China to below 15% by 2026 and under 10% by 2027. As part of this initiative, Mattel will relocate production for 500 toy lines from Chinese factories to other countries.

Market uncertainty is looming as Mattel joins numerous companies in suspending their full-year financial forecasts. This move raises concerns regarding consumer spending trends, especially as the lucrative holiday season approaches. Analysts warn that such indecision can create instability in the market, prompting investors to approach with caution.

As Mattel navigates these unprecedented challenges, families across the country may soon find that their favorite toys come at a steeper price, a reality that underscores the tangible effects of international trade relations on everyday life.