Car giant Ford and Barbie maker Mattel warn over tariffs costs

Toymaker Mattel, known for its iconic Barbie dolls, has announced that it will raise prices on some toys in the US as a result of increased costs caused by President Donald Trump’s tariffs.

The company also revealed plans to cut back on how many of its products are made in China for the American market. Currently, 20% of Mattel’s toys sold in the US are imported from China, but the firm plans to reduce that number to below 15% by next year.

The update came as Mattel briefed investors, saying that the changing US tariff rules and economic uncertainty make it difficult to predict how much American consumers will spend—especially during the holiday season. The US accounts for about half of Mattel’s total global toy sales.

Mattel isn’t the only big company raising concerns. Car manufacturer Ford says tariffs will add around $1.5 billion to its costs this year. In fact, the company expects the full impact of the tariffs to be $2.5 billion, but says it has managed to reduce that hit by $1 billion through cost-saving strategies, like transporting vehicles from Mexico to Canada to avoid tariffs.

Ford also said it would pause its annual earnings guidance, blaming the uncertainty around US trade policy.

Since returning to the White House in January, Trump has imposed new import taxes of up to 145% on Chinese goods. Combined with existing tariffs, the total levies on some products could reach 245%. China has responded with a 125% tax on US products.

Beyond China, Mattel also imports toys from Indonesia, Malaysia, and Thailand, which were all hit with steep tariffs earlier this year before the US government paused them for 90 days.

President Trump has acknowledged that American families may feel the impact, saying children might end up with “two dolls instead of 30 dolls” — but insisted that China would suffer more in the long run.

Meanwhile, other global companies are echoing concerns about rising costs and supply chain disruptions:

• Intel warned of increased risks of an economic slowdown and potential recession, with its CFO calling the current trade policies “very fluid.”
• Adidas said tariffs will make popular sneakers like the Gazelle and Samba more expensive in the US.
• Skechers described the situation as “too dynamic” to confidently plan for the future.
• Procter & Gamble, which makes household brands like Gillette, Ariel, and Head & Shoulders, is also considering price hikes due to higher costs for raw materials sourced from tariff-affected countries.

As more companies speak out, the list of businesses warning about the negative effects of tariffs on their operations and the broader US economy continues to grow.