Trump threatens Mattel with 100% tariffs as doll fallout escalates: ‘He won’t sell one toy in the US’ - Mattel CEO said tariffs will not increase toy production inside the US

Retailers are trying to navigate their way through economic uncertainty in 2025. Tariffs, inflation and lingering fears of a recession have left many Americans uneasy and pulling back on spending. Because consumer spending accounts for about 70% of U.S. economic activity, a retreat would heighten the odds of contraction for the U.S. economy.

It’s been a critical stretch for measuring how some of the country’s largest retailers are managing President Donald Trump’s elevated import tariffs, as multiple big name stores share their quarterly earnings reports.

The potential trade war could reshape the toy industry, impacting prices and availability in the U.S., Mattel's largest market. As tensions rise, the future of Barbie and other toys hangs in the balance.

Target’s CEO Brian Cornell said that raising prices to cover President Donald Trump’s tariffs will be the retailer’s “very last resort.” He made the comment on Tuesday as Target reported weaker-than-expected sales in its first quarter and cut its forecast for the whole year.

Retailers have been treading carefully around the question of price increases and minimizing discussion of import taxes since Trump slammed Walmart last weekend.

Tariffs imposed on automotive imports by the Trump Administration have already led to increased prices on full-sized cars, but the pain may not end there. A new quip from President Donald Trump suggests that 1:64th scale cars from Hot Wheels may receive a specific tariff next.

Treasury Secretary Scott Bessent described his call with the company’s chief executive a day after President Trump warned Walmart to avoid raising prices from the tariffs at all and vowed to keep a close watch on what it does.

Royce, Range Rover and Aston Martin will be getting a tariff reprieve under the outlines of a trade agreement President Donald Trump announced Thursday while doubling down on his threats to continue tariffs on toys.