Two Barbies and Five Pencils, A Tariff Failure

According to President Trump, kids will receive no more than two Barbies and five pencils for Christmas this year. His erratic tariffs might make his Christmas wish come true.

Barbies travel from China and Indonesia on cargo ships before being placed under Christmas trees. Due to President Trump’s leadership on tariffs, Barbie is cancelling her travel plans.

Tariffs Are Taxes on American Businesses

When the United States imposes tariffs on other countries, Americans pay for them. The explainer video below, created by the former Labor Secretary and Professor of Economics, Robert Reich, is excellent.

On May 6, 2025, tariffs on Barbies from China were 145%. In response, fewer Barbies were ordered. Companies like Mattel, which make Barbies, are scrambling for a fix.

Can existing factories be converted in time for Christmas? Outfitting giant factories requires enormous costs and permits. Even with tariffs at 145%, Mattel leaders say it is still cheaper to make Barbies abroad.

In other words, factories are not returning to America. In business, the quickest way to the dollar typically wins.

Mattel CFO Anthony DiSilvestro said the tariffs will increase business costs by at least $270 million this year, and “that’s before you consider any of the mitigating action.”

Only eight days after Mattel started scrambling to change its business operations, Trump lowered tariffs on products from China to 30%. Does that mean children can be gifted more than two Barbies and five pencils this year?

Weakening American Businesses With Tariffs

The irrational, nonsensical tariffs that go up and down within days of each other harm and weaken a company’s position. At the same time, it weakened the US Dollar. A sell-off of US Treasury Bonds revealed fiscal weakness to the world. Countless Americans’ retirement savings lost value as the stock market crashed. Overnight, we all became poorer. Even a dollar wasn’t worth a dollar anymore.  

Several automakers responded to Trump’s tariffs in late April by laying off thousands of employees. The auto industry’s job losses are significant: 800 people at Volvo, 2,000 steelworkers, and 200 at General Motors. A recent report from Goldman Sachs anticipates half a million job losses in the US related to tariffs. 

As everyone becomes poorer, Medicaid and SNAP are also being pillaged by the man who is stealing Christmas through the Reconciliation Bill. If it passes, its harms will take effect, just in time for Christmas.

The Christmas failure storybook does not end there.

Insider Trading is Suspected

Trump has watched the stock market rise and fall with tariff announcements. Right now, several lawsuits are being filed over foul play by the administration. 

If the tariffs hurt your business, retirement, savings, or if you are just tired of inflation, let your representative know.