Mattel executive says it may have to charge consumers more for its toys because of higher tariff costs on imports from China.

Toymaker Mattel said it is considering raising prices in response to President Donald Trump's new tariffs on China and potential duties on Mexico and Canada. The toy giant behind popular brands such as Barbie and Hot Wheels sources about 40% of its goods from China,

Mattel shares climbed as much as 18% in early trading on Wednesday after the Hot Wheels maker provided an upbeat annual profit forecast and hinted at stabilizing toy demand, despite tariff-related uncertainty.