Toy Tariffs Hit Hard: Mattel and Others Raise Prices, Leaving Barbie and He-Man Fans Pinched

Mattel is hiking toy prices due to massive tariffs, and fans of Barbie and He-Man are about to feel it in the wallet.

Mattel dropped a bomb on May 5, announcing price hikes across its U.S. products in response to tariff-related cost increases—reportedly as high as $270 million, though this figure hasn’t been officially confirmed. With 145% tariffs slapped on Chinese imports—and roughly 80% of U.S. toys historically manufactured there—Barbie and He-Man collectors might want to check their budgets before hitting the toy aisle.

According to Toy News International, even Barbie pins are facing steep price increases, and a basic swimsuit Barbie was already up 42.9% in April, now sitting at $14.99. He-Man figures? Already $20 a pop. If they go any higher, you’ll need Castle Grayskull-sized cash to keep up.

Why It Matters: A $40 Billion Industry Feels the Burn

The toy industry is worth about $40 billion in the U.S. and leans hard on Chinese manufacturing. With 145% tariffs in place, Mattel has said the duties could impact half of its U.S. sales. The company still makes 40% of its toys in China, and it’s not the only one sweating. Hasbro, McFarlane Toys, and Super7 are also expected to raise prices.

The Toy Association is already warning of a possible Christmas crisis due to delayed production and disrupted supply chains. If you thought 2021’s holiday shortages were bad, buckle up—Santa might need to outsource to India this year.

Innovation at Risk: The Ripple Effect

Tariffs aren’t just about price tags—they’re stifling creativity. Over at China’s Canton Fair, toy exporters say interest from U.S. buyers has cooled off. Some exhibitors noted that order suspensions have put a serious dent in R&D, which means fewer new toys coming down the pipeline.

Even President Trump brushed off concerns, suggesting kids could “make do with fewer dolls—maybe two instead of 30.”

Easier said than done when Barbie needs an outfit for every occasion.

Mattel’s Countermove: Shifting to India (Sort Of)

Mattel is now pumping out more UNO decks and other card games from India to escape the tariff squeeze. CEO Ynon Kreiz was cautious about long-term impacts, noting, “It’s hard to tell where things will land,” as the company tries to stabilize.

They’ve claimed a significant percentage of their toys will remain under $20, though exact figures vary across sources. That promise might be flimsier than a plastic Dreamhouse. The Toy Association’s Greg Ahearn warned of a “frozen supply chain” that could derail the holidays.

Good luck finding that Dream Camper by December.

Skeletor’s Advocate: Is This Overblown?

Let’s be fair. Mattel brought in $5.4 billion in 2024, so even if the $270 million tariff figure holds, it’s just 5% of revenue. Sure, a 42.9% price jump sounds brutal, but $14.99 for a Barbie is still cheaper than most movie tickets. And if Mattel can maintain affordability across much of their lineup, it may not be a total disaster.

Still, toy prices creeping higher and product rollouts slowing down? That’s a recipe for frustrated kids and parents alike. Panic may be premature, but your wallet will still notice.

What Now?

Toy tariffs are shaping up to be the Grinch of 2025. If you’re planning on expanding your collection or buying gifts, now might be the time. Barbie and He-Man aren’t going anywhere—but their price tags sure are.

Sources:

• Toy News International, “Mattel Announces Price Increases Due To Tariffs,” May 5, 2025

• CNN Business, “Your Barbie could cost more, Mattel warns,” May 5, 2025

• Reuters, “Barbie-maker Mattel pulls forecasts, to hike US prices as tariffs raise costs,” May 5, 2025

• Newsweek, “10 Everyday Items About to Get Pricier Due to Tariffs,” May 2, 2025

• South China Morning Post, “Trump tariffs portend bleak prospects for China’s toy exporters at Canton Fair,” May 4, 2025

News compiled, edited and fact-checked by Derek Gibbs and Edgar B. for D/REZZED from Clownfish TV.