As far as its efforts to address tariffs, Kreiz said that the company is also focused on diversifying its global supply chain to reduce its reliance on China. The Mattel chief claimed in the conversation today that in two years, no single country will represent more than 25% of Mattel’s sourcing.

Citing uncertainty about the economy and tariffs, Mattel also paused its financial guidance for the full year and said it expects tariffs to affect costs in the third quarter.

Mattel is accelerating its efforts to reduce reliance on Chinese manufacturing due to steep U.S. tariffs, aiming to decrease imports from China.