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.

As far as its efforts to address tariffs, Kreiz said that the company is also focused on diversifying its global supply chain to reduce its reliance on China. The Mattel chief claimed in the conversation today that in two years, no single country will represent more than 25% of Mattel’s sourcing.

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.