Hasbro Seeks Tariff-Exempt Toys: Magic: The Gathering Cards Continue to Sell in High Demand
Hasbro Rides Out Trade Storm, Wizards of Coast Feels a Splash
The Trump administration's tariffs have been in effect for a month now, and various businesses have felt the pinch. Interestingly, toy giant Hasbro isn't one of them, at least not significantly.
On a recent investor call, Hasbro's CEO, Chris Cocks, declared the company's resilience in the current global trade climate. Its digital games business and domestically-produced board games shield it from tariff threats. Wizards of the Coast, the division responsible for Dungeons & Dragons and Magic: The Gathering, boasts a low tariff exposure. The division's domestic operations are stationed in Texas and North Carolina, while international manufacturers are in Kyoto, Japan, and Europe—regions currently exempt from the tariffs.
China, bearing the brunt of the tariffs, continues to serve as a significant manufacturing hub. However, only D&D boxed sets imported from China affect Wizards-related operations. Cocks acknowledged that the company has been managing more complex logistics and called for a more predictable U.S. trade policy environment. He expressed his support for the Toy Association's advocacy for zero tariffs on toys and games globally.
Cocks warned that tariffs can lead to higher consumer prices, potential job losses due to cost adjustments, and reduced profits for shareholders. Yet, he remained optimistic about Hasbro's resilience, crediting its robust games and licensing businesses for maintaining the guidance unchanged. However, prolonged tariff conditions could impose structural costs and heighten market unpredictability.
For the time being, Hasbro is optimistic about its Wizards products, especially Magic: The Gathering. The card game showed a surging business during the first quarter of the fiscal year 2025-2026, contributing significantly to the division's 46% revenue growth. Cocks attributed this growth to the game's continued strength in licensing, particularly the forthcoming crossover with Final Fantasy. The upcoming Universes Beyond set, releasing on June 13, has already set a record for pre-orders, making it the best-selling Magic set ever.
Looking ahead, fans can expect exciting developments in the Marvel, Star Wars, and Star Trek universes, a new era for the DC Universe on film and TV, and the future unfolding for the regenerating Doctor Who.
While Hasbro navigates the tariff waters relatively smoothly, the broader toys and games industry voices strong opposition to tariffs, highlighting potential negative impacts. Smaller publishers and the tabletop gaming community, in particular, fear increased costs, reduced licensing opportunities, and potential industry collapse, should tariffs persist.
[1] The increased costs resulting from tariffs could affect the price base for Wizards of the Coast’s products, specifically due to tariff-affected paper imports.[2] The tariffs could threaten WotC’s revenues from licensing, as manufacturers may cut back production due to higher costs.[3] The potential resource constraints from its parent company, Hasbro, caused by the tariffs could limit investment in D&D products.
- The increased costs resulting from tariffs could potentially affect the price base for Wizards of the Coast’s products, specifically due to tariff-affected paper imports.
- The tariffs could threaten Wizards of the Coast’s revenues from licensing, as manufacturers may cut back production due to higher costs.
- The potential resource constraints from its parent company, Hasbro, caused by the tariffs could limit investment in D&D products.
- Smaller publishers, fearing increased costs, reduced licensing opportunities, and potential industry collapse, have voiced strong opposition to tariffs in the broader toys and games industry, along with the tabletop gaming community.
