Trump Jokes About Mattel as a 'Country' Amid Tariff Dispute; Mattel CEO Rejects U.S. Manufacturing Shift

On May 8, 2025, President Donald Trump referred to toy manufacturer Mattel as a 'country' during a White House press conference, amid tensions over tariffs, including a 145% duty on Chinese imports. Mattel CEO Ynon Kreiz stated the company would not move production to the U.S. due to high costs, opting to raise prices or diversify manufacturing. Trump threatened a 100% tariff on Mattel's toys, risking their access to the U.S. market. Mattel plans to reduce Chinese imports and shift production to countries like India, reflecting broader industry concerns over tariffs.

Trump’s Remarks Spark Buzz

At the May 8 press conference, held shortly after announcing a trade agreement with U.K. Prime Minister Keir Starmer, President Trump fielded questions about the economic impact of his administration’s tariff policies. When asked about Mattel’s decision to raise toy prices rather than move production to the U.S., Trump responded with a mix of criticism and humor.

“Mattel, I don’t know. I’m not so sure. They also said—they’re the only country I’ve heard, they said, ‘Well, we’re going to go counter. We’re going to try going someplace else.’ That’s okay,” Trump said. “Let him go, and we’ll put a 100 percent tariff on his toys. And he won’t sell one toy in the United States, and that’s their biggest market.”

The president’s reference to Mattel as a “country” quickly drew attention online, with some questioning whether he had confused the toy company with a sovereign nation. However, Trump appeared to clarify his understanding moments later, referring to “his toys”—a nod to Mattel CEO Ynon Kreiz—and adding, “I wouldn’t want to have him as an executive too long,” suggesting he was aware Mattel was a corporation.

Mattel CEO: U.S. Manufacturing Not Feasible

The president’s comments were in direct response to statements made by Mattel CEO Ynon Kreiz during a May 6 interview on CNBC. Kreiz explained that the company had no plans to move toy production to the United States, citing high operational costs.

“We don’t see that happening,” Kreiz said. “We believe that production in other countries where we can be efficient and more productive is the best balance between manufacturing outside of the U.S. and continuing to develop product in terms of design and creativity in America.”

Kreiz emphasized that even with tariffs, manufacturing toys in the U.S. would not be cost-effective. Instead, Mattel plans to reduce its reliance on Chinese imports—from 20% currently to less than 10% by 2027—by shifting production to countries like India. The company also announced it would be raising prices in the U.S. to offset the impact of tariffs.

Tariffs and the Toy Industry

The dispute between Trump and Mattel comes amid broader concerns within the toy industry about the impact of tariffs on consumer prices and supply chains. The administration’s 145% tariff on Chinese imports has hit toy manufacturers particularly hard, given the industry’s longstanding dependence on Chinese production.

Industry representatives have warned that the tariffs could lead to higher prices and product shortages, especially during the holiday season. Many companies are lobbying for exemptions, arguing that the U.S. lacks the infrastructure and cost efficiency to support large-scale toy manufacturing.

Despite these concerns, Trump has downplayed the potential impact on American families. In a separate interview on Meet the Press, he remarked, “I don’t think that a beautiful baby girl that’s 11 years old needs to have 30 dolls. I think they can have three dolls or four dolls.” He added that the reduced number of toys might cost “a couple of bucks more,” but suggested that was a reasonable trade-off for reducing the trade deficit with China.

Political and Public Reactions

Trump’s remarks have sparked a mix of amusement and criticism online. A video clip of the president referring to Mattel as a country circulated widely on social media, with some users questioning his grasp of basic corporate knowledge. Others interpreted the comment as a rhetorical flourish rather than a genuine misunderstanding.

Vice President JD Vance later defended the administration’s stance, framing the tariffs as a matter of national security and economic independence. “As an American parent, would you like to—God forbid, if your country goes to a war and your son or daughter is sent off to fight—would you like to know that the weapons that they have are good, American-made stuff, not made by a foreign adversary?” Vance said.

Mattel’s Strategic Shift

While Mattel has no plans to bring manufacturing to the U.S., the company is actively restructuring its global supply chain. According to company statements, Mattel will relocate the production of 500 of its toy models from China to other countries, including India. The company aims to reduce its Chinese imports to 15% by next year and to under 10% by 2027.

This strategy reflects a broader trend among multinational manufacturers seeking to mitigate the risks of U.S.-China trade tensions by diversifying their production bases. However, the decision to bypass U.S. manufacturing altogether has placed Mattel in the crosshairs of the Trump administration’s protectionist trade agenda.

Trump Jokes About Mattel as a 'Country' Amid Tariff Dispute; Mattel CEO Rejects U.S. Manufacturing Shift

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