The company, which manufactures about 40% of its toys in China, is considering price hikes while also exploring ways to adjust its supply chain to mitigate tariff impacts.

Trump recently imposed a 10% tariff on Chinese goods, with a temporary pause on 25% tariffs for Mexico and Canada.

While Mattel plans to adjust its production and work with suppliers to limit cost increases, higher prices for consumers are expected

The company aims to reduce its reliance on China and Mexico by 2027, shifting sourcing to other regions.