This Barbie is about to get more expensive — and you can thank U.S. President Donald Trump.

In a significant shift, Mattel, the iconic toy manufacturer behind Barbie, announced plans to increase prices in the United States, a move attributed to the U.S. government's imposition of hefty tariffs on imported toys. This announcement came alongside the company's decision to retract its financial forecasts for 2025, citing the volatile 'U.S. tariff landscape' as a primary obstacle to accurately predicting consumer spending patterns. The backdrop of these developments is the ongoing trade tensions between the U.S. and China, exacerbated by President Donald Trump's trade policies, which have penalized imports from China with tariffs as high as 145%. Mattel, which sources 40% of its products from China, is feeling the pinch of these tariffs and is now looking to diversify its supply chain to mitigate the impacts on its pricing strategies. Notably, CEO Ynon Kreiz expressed doubt that the tariffs would bring manufacturing jobs back to America, a goal purportedly behind Trump's tariffs. Kreiz's statements during an appearance on CNBC highlighted the complexities of toy manufacturing, emphasizing that production outside of the U.S. is necessary to maintain affordability and quality. Despite Trump's insistence that the tariffs would not significantly affect consumer prices, the reality for companies like Mattel is quite different. The Toy Association's survey reflecting the fears of toy companies regarding their potential business failure due to these tariffs underscores the broader economic implications at play. As Mattel grapples with these challenges, its stock has already seen a 19% decrease since the tariffs were introduced, illustrating the immediate financial repercussions of the current political climate.