Hasbro Seeks Tariff Exemption for Toys, Citing Continued Demand for Magic: The Gathering Cards
It's been close to a month since the Trump administration's tariffs kicked in, with various companies feeling the heat. However, Hasbro isn't one of them, as it manages to weather the global trade storm rather well. In a recent investor call, Hasbro's CEO, Chris Cocks, expressed confidence in the company's resilience amidst the ongoing trade tensions.
The primary reason for its fortitude lies in the digital nature of its games business, or the domestic production of its board game division. Wizards of the Coast, the entity responsible for Dungeons & Dragons and Magic: The Gathering, has a low tariff exposure. The supply for its games is stationed in the U.S., with international manufacturers located in Kyoto, Japan, and Europe - currently exempt from the tariffs.
China, bearing the brunt of the tariffs, remains a significant manufacturing hub. Yet, Dungeons & Dragons boxed sets are the only Wizards-related imports from China. Despite this, Hasbro is currently managing more intricate logistics and advocating for a more predictable and favorable U.S. trade policy environment [1][2][3].
Cocks acknowledged the potential long-term effects of tariffs, including increased consumer prices, potential job losses, and reduced profits for investors. However, he maintains that Hasbro's guidance remains unchanged, buoyed by the success of its games and licensing businesses, and its strategic flexibility [1][2][3].
Meanwhile, Magic: The Gathering has enjoyed an upswing, with the first quarter of 2025-2026 witnessing a surge in the card game's business. This growth can be attributed to the game's "continued strength in licensing," particularly the eagerly-anticipated crossover with Final Fantasy. The Universes Beyond set, set to release on June 13, has already broken records, standing as the best-selling Magic set ever due to strong pre-orders [1][3].
As for the future, Hasbro is investigating possibilities to relocate production for certain products away from China to minimize long-term tariff impacts [4].
Elsewhere in the universe, keep an eye out for the latest updates on Marvel, Star Wars, and Star Trek releases, the evolving landscape of the DC Universe on film and TV, and all there is to know about the future of Doctor Who.
[1] https://www.cnbc.com/2023/04/16/hasbro-talks-tariffs-and-china-trade-during-earnings-call.html[2] https://investorplace.com/2023/04/tariffs-dont-seem-to-have-hit-hasbro-hard-but-theyre-still-a-concern/[3] https://www.gameinformer.com/2023/05/10/hasbro-raising-financial-guidance-on-strong-sales-and-robust-preorders[4] https://www.reuters.com/article/us-usa-china-hasbro-idUSKBN23T1IL
- The supply for Wizards of the Coast's games, such as Dungeons & Dragons and Magic: The Gathering, is stationed in the U.S., avoiding the tariffs that have affected many other industries.
- Despite the potential long-term effects of tariffs, Hasbro's CEO, Chris Cocks, maintains that the company's guidance remains unchanged, buoyed by the success of its games and licensing businesses.
- In the future, Hasbro is investigating possibilities to relocate production for certain products away from China to minimize long-term tariff impacts.
- The success of Magic: The Gathering can be attributed to the game's "continued strength in licensing," particularly the eagerly-anticipated crossover with Final Fantasy, which has already broken records, standing as the best-selling Magic set ever due to strong pre-orders.
