Trump Threatens to Impose 100% Tariff on Mattel for Manufacturing Outside the U.S.

• Trump threatens 100% tariff on Mattel
• Company has no plans to return production to the U.S.
• Toy industry warns of price hikes and shortages

President Donald Trump warned that he would impose a 100% tariff on Mattel, maker of the iconic Barbie doll, after the company announced it would continue manufacturing outside the United States and reduce its reliance on China.

Why it matters:

• Toys, especially dolls, have become a flashpoint in the U.S.-China trade debate.
• Trump has downplayed the impact of tariffs on this sector, while the industry warns of serious consequences for the market, particularly during the holiday season.

What Trump said about tariffs on Mattel:

• “We’re going to put a 100% tariff on their toys, and they won’t sell a single one in the United States, which is their biggest market,” he stated from the Oval Office when talking about Mattel.
• He also remarked that young girls don’t need to have “30 dolls,” referencing the trade deficit with China.

The context:

• Mattel plans to diversify its supply chain and reduce its reliance on China, but does not plan to bring manufacturing back to the U.S.
• Its CEO, Ynon Kreiz, said this week that “production in other countries is more efficient.”
• The company has already announced price increases in the U.S. due to current trade policies.
• Trump responded that companies like Mattel and Ford only say that “as a negotiation tactic.”

What experts are saying about Mattel and its reliance on China:

• 80% of the world’s toy production takes place in China, according to Mattel.
• The Toy Association has called for the removal of tariffs to avoid shortages and price hikes.

Between the lines:

The Trump administration has not granted exemptions for toys and has shown no signs of doing so, despite pressure from the industry.

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