The U.S. toy manufacturer Mattel could raise prices in the U.S. to offset the impact of tariffs imposed by President Donald Trump on imports from China and Mexico. The company is considering various measures to compensate for the higher costs, said CEO Ynon Kreiz during the presentation of the quarterly figures.

Mattel, known for Barbie, Hot Wheels, and Uno, currently produces less than 40 percent of its goods in China, while Mexico accounts for less than 10 percent of production. Trump recently imposed an additional 10 percent tariff on Chinese goods and threatens with 25 percent tariffs on imports from Mexico and Canada.

We are well positioned to flexibly utilize our supply chain and minimize the impact of tariffs," said Kreiz. In addition to operational adjustments, passing on the higher costs to consumers is also possible.

The company reported fourth-quarter revenue of $1.6 billion, up 2 percent from the previous year and slightly above expectations. Net income fell 4 percent to $141 million, but still significantly exceeded forecasts. Mattel's stock rose 9.5 percent in after-hours trading.

For 2025, we plan both revenue and profit growth, even taking into account the new tariffs," emphasized Kreiz.

Mattel began diversifying its production sites back in 2018 and currently manufactures in seven countries, including Indonesia, Malaysia, and Thailand. By 2027, no country is to account for more than 25 percent of global production to better mitigate geopolitical risks.

The new tariffs on Chinese goods came into effect on Tuesday. However, Trump suspended the duties on Mexican and Canadian imports for 30 days after speaking with Mexico's President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.