Hot Wheels diecast cars have always been a favourite with kids and adults alike. Thanks to affordable prices, it’s the best and easiest way to get into the hobby of scale model collecting. However, the Trump administration’s tariffs could change things. Hot Wheels cost just under a dollar when launched in 1968, creeping up to nearly 10 dollars with today’s inflation. And yet, the little diecast cars are still very affordable. Hot Wheels has managed to keep prices in check by keeping the design team in the US and outsourcing production overseas. This was started in the 1970s, primarily in Hong Kong, but today most Hot Wheels are made in Malaysia, which boasts the largest Hot Wheels factory in the world. Hot Wheels’ longtime connection with Malaysia is so important that the company made a scale-sized version of a red Proton Saga sedan part of its mainline toys last year. The Proton Saga is to Malaysia what the Volvo 240 is to Sweden. Now, however, building toy cars overseas and importing them into the US is going to run afoul of the tariffs put into place this year. The entire toy industry is reporting disruptions to manufacturing supply lines, and some are responding by raising prices, as well as diversifying those supply chains. Mattel has said in an official statement that maintaining affordability is still a key part of the company’s plans. The expected hit of the tariffs as they currently sit is 100 million dollars for 2025. Quarterly sales and net income are reportedly down by 6 percent each. This seems to be driven by worried retailers cutting back on ordering new stock. Hot Wheels hasn’t announced any tariff-related changes yet, but prices of the toy cars could go up in the future. Source: Car And Driver
