May 5 (Reuters) - Barbie-maker Mattel withdrew its annual financial targets on Monday and said it would increase prices for some products in the United States as Trump administration's sweeping tariffs bump up input costs for the toymaker.

The shares dropped 1.2% in extended trading.

"Given the volatile macroeconomic environment and evolving U.S. tariff landscape, it is difficult to predict consumer spending and Mattel's U.S. sales in the remainder of the year and holiday season," it said.

The U.S. represents about half of Mattel's global toy sales, and the company imports about 20% of its goods sold in the country from China. Mattel said it would reduce imports into the U.S. from China to below 15% by 2026.

The U.S. and China have hiked tariffs on each other's goods to more than 100% since U.S. President Donald Trump took office earlier this year, in a full-on trade war between the world's two biggest economies that has upended global supply chains.

"There's no question that tariffs are creating disruption in the industry. Many companies have stopped production and shipping to the U.S. as a result of tariffs from China. We do support the Toy Association's advocacy for zero tariffs on toys," Mattel CEO Ynon Kreiz told Reuters.

The company will also make changes to its supply chain to reduce China-sourced product in the U.S. For instance, it was ramping up production of the UNO card game in India to serve the U.S. market and was increasing flow from China towards international customers, Kreiz said.

Apart from China, Mattel imports products such as Barbie dolls and Hot Wheels toys from Indonesia, Malaysia and Thailand, which were also hit by reciprocal tariffs from the Trump administration in early April before being paused for 90 days.

Mattel expects about $270 million in incremental costs from tariffs this year, beginning in the July quarter, but mitigating actions are expected to fully offset those costs, outgoing finance chief Anthony DiSilvestro said on a post-earnings call.

The company said it would also temper promotions to save costs and increased costs-savings target for the year to $80 million from $60 million.

"The toymaker is squarely in the crosshairs of Trump's tariff war," said Zak Stambor, senior analyst at Emarketer.

Mattel had earlier targeted 2025 adjusted earnings per share between $1.66 and $1.72 and annual net sales growth of 2% to 3%.

In contrast, peer Hasbro, which sources about half of its toys and games sold in the U.S. from China, maintained its annual forecasts in April, helped by strength in its gaming segment.

Kreiz, however, said the second quarter was off to a strong start with demand growing.

Mattel's first-quarter net sales of $827 million beat analysts' average estimate of $786 million, according to data compiled by LSEG. It also posted a smaller-than-estimated adjusted loss per share of 3 cents.

The company bought back shares worth $160 million during the quarter ended March 31 and maintained its $600 million repurchase target for 2025.