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 said it’s considering raising prices on U.S. toys, a warning that comes one day after Trump doubled down on comments that kids don’t need more than a few dolls.

Mattel CEO Ynon Kreiz told CNBC he does not foresee toy manufacturing coming to America. Instead, the company expects to raise prices in the U.S. to offset President Donald Trump's 145% tariff on Chinese imports.