Trump threatens 100% tariff on Mattel, mistakenly calls toy company a country

US President Donald Trump raised eyebrows after mistakenly referring to Mattel—the American toy manufacturer known for Barbie dolls—as a country during a recent statement defending his tariff policies.

While arguing that tariffs are "misunderstood" in the business world, Trump attempted to cite global reactions to his trade decisions. “You know, even Mattel is thinking about counter-tariffs,” he said, seemingly confusing the California-based company with a foreign government.

Trump threatened to impose a 100 percent tariff on the company’s toys after its leadership pushed back on the feasibility of shifting manufacturing to the United States.

The criticism came after the toymaker defended its reliance on overseas production, arguing that making toys in the US would significantly raise costs. According to the company, such a move would make its products too expensive for many American families.

In response, Trump suggested families should prepare for a leaner Christmas. “Well, maybe the children will have two dolls instead of 30 dolls, you know?” he said, adding that the smaller haul might “cost a couple of bucks more than they would normally.”

Mattel consequently announced plans to raise prices in the US.

Mattel, which produces one-fifth of its US-sold toys in China, revealed in its first-quarter earnings that it intends to reduce that number to under 15 percent by 2026. But for now, the company is bracing for the effects of Trump’s 145 percent tariffs, which have shaken confidence across multiple industries. The toy giant also suspended its financial forecast for the year, pointing to uncertainty over trade policy.

With around 80 percent of toys sold in the US still made in China, other companies are also warning of price hikes and supply issues. A recent survey by the Toy Association found that many small manufacturers have already pulled back orders. Roughly half of the 410 companies surveyed said they could go out of business within months if the tariffs continue.

Mattel joins a growing list of major corporations—including GM, Snap, and UPS—that have withdrawn financial projections due to the unpredictable economic climate. The company cited a “volatile macroeconomic environment and evolving US tariff situation,” saying these conditions make it too difficult to forecast consumer behavior and sales.