Mattel Inc. has announced price increases on select toys in the U.S. to offset rising costs from tariffs imposed on Chinese imports, which can reach as high as 145%.

Due to uncertainties in consumer spending, particularly ahead of the holiday season, Mattel has suspended its full-year guidance for 2025.

Retailers are facing challenges with restocking as initial inventory levels drop, raising concerns about potential shortages this summer.

In response to anticipated price hikes and shortages, consumers are adjusting their shopping behaviors, opting for early purchases as the holiday season approaches.

Supply chain issues are exacerbated by a rush to import goods before tariffs were enacted, particularly affecting U.S. ports.

These supply chain disruptions are extensive, impacting not only factories but also upstream suppliers, complicating recovery efforts.

Even if a trade deal with China is reached, the shipping industry is grappling with increased blank sailings, which may delay product availability for the holiday season.

Recent manufacturing data from China shows factory activity has dropped to a 16-month low, further straining U.S. retailers' supply chains.

Retail analysts warn that consumers can expect higher prices and fewer discounts during the upcoming holiday shopping season due to these tariffs.

The ongoing trade conflict between the U.S. and China has led to tariffs exceeding 100% on various goods, significantly disrupting global supply chains.

Some suppliers are diversifying their manufacturing sources outside China to mitigate inventory shortages as tariffs continue to impact costs.

The New Jersey Halloween & Costume Association has reported substantial price increases for costumes and masks, reflecting the broader impact of tariffs on consumer goods.