Mattel Inc., known for toys like Barbie and Hot Wheels, announced on Monday that it plans to raise prices on some U.S. products “where necessary” to counteract the increased costs from President Donald Trump’s tariffs.

Although the company is accelerating efforts to reduce its reliance on Chinese manufacturing, executives said the price hikes are still needed. China currently produces 40% of Mattel’s global output, but the company plans to shift the production of about 500 items this year to other countries—up from 280 last year. This move follows Trump’s 145% tariff on most goods made in China.

To avoid supply issues, Mattel will manufacture certain popular toys in multiple countries and prioritize uninterrupted deliveries to retailers. Despite the price increases, the company expects that 40% to 50% of its toys will still retail for $20 or less.

CEO and Chairman Ynon Kreiz told analysts that Mattel’s global, adaptable supply chain gives it an advantage during this uncertain time. However, due to the unpredictability of U.S. trade policy, the company withdrew its full-year earnings forecast, citing challenges in projecting consumer behavior and domestic sales.

In its first-quarter earnings report, Mattel posted a 2% revenue increase to $827 million but also a larger loss of $40.3 million (12 cents per share), compared to a $28.3 million loss (8 cents per share) a year earlier. Analysts had predicted a 10-cent loss and $786.1 million in revenue, according to FactSet.

After-hours trading saw Mattel’s stock dip slightly, by less than 1%.