The impact of tariffs can ripple across various industries, and it has been a month since the Trump administration’s tariffs came into effect. Among the companies affected, Hasbro stands out as one that has managed to navigate these waters effectively.
In a recent investor call, CEO Chris Cocks stated that Hasbro is “well positioned” amidst the current global trade situation. The games segment of the company is largely digital, and its board game production remains mostly domestic. This has insulated them from many of the tariff-related issues faced by others in the market.
Wizards of the Coast, Hasbro’s subsidiary responsible for iconic franchises like Dungeons & Dragons and Magic: The Gathering, has “low tariff exposure.” Their domestic supply chain operates from Texas and North Carolina, while international manufacturing is based in Kyoto, Japan, or Europe—both of which are currently exempt from these tariffs.
Despite the challenges imposed by tariffs, China continues to serve as a significant manufacturing hub for many industries. However, Hasbro only imports D&D boxed sets from China. Cocks expressed the need for “a more predictable and favorable U.S. trade policy environment,” highlighting the potential consequences of ongoing tariffs: higher consumer prices, possible job losses, and reduced profits for shareholders.
For now, Hasbro’s Wizards product line, especially Magic, remains robust. In fact, Cocks noted that the card game experienced a “surging business” in the first quarter of 2025-2026, contributing to a remarkable 46% revenue growth.
The upcoming crossover with Final Fantasy in the Universes Beyond set, set to launch on June 13, has already become the best-selling Magic set ever based on pre-orders. This continuing strength in the licensing sector signals a positive trend for Hasbro.
What are some of the main challenges that toy companies face due to tariffs? Toy companies often struggle with increased production costs, which can lead to rising consumer prices, and uncertainties around international trade policies can disrupt supply chains.
How do tariffs affect consumer prices for toys? Tariffs generally lead to higher import costs, which manufacturers often pass on to consumers, resulting in increased prices for toy products.
Is Hasbro the only toy company affected by tariffs? No, while Hasbro has managed to limit its exposure, many toy companies have faced significant challenges due to increased costs and supply chain disruptions caused by tariffs.
What steps are companies like Hasbro taking to manage tariff impacts? Companies are looking for more domestic production options and advocating for favorable trade policies to mitigate tariff effects and streamline their operations.
In conclusion, as Hasbro continues to adapt to the fluctuating landscape of global trade, they remain a strong player in the industry. Their ability to pivot and respond to challenges has kept them resilient, setting a noteworthy example for other companies to follow. Interested in learning more about toy industry dynamics and trends? Explore related insights on Moyens I/O.