The Unyielding Impact of Trump's Tariffs on Hasbro and Wizards of the Coast
Toys exempt from tariffs are sought by Hasbro, as sales of Magic: The Gathering cards remain robust
Let's dive into the effects of those Trump administration tariffs, almost a full month post-enactment (and semi-reversal). Plenty of businesses have felt the heat, but Hasbro isn't typically one of them.
On a recent investor call, CEO Chris Cocks boldly stated that Hasbro was on the right track, navigating the complex trade environment like a seasoned sailor. A large chunk of its business lies in the digital realm, or for its board game division, mostly produced domestically. Specialized affiliates, such as Wizards of the Coast, responsible for games like Dungeons & Dragons and Magic: The Gathering, boast minimal tariff exposure.
Most of the domestic manufacturing for Wizards is stationed in Texas and North Carolina, while international manufacturers are based in Kyoto, Japan, or Europe—tariff-exempt zones at present. But China, bearing the brunt of these tariffs, remains a "major manufacturing hub." Despite that, D&D boxed sets are the sole Wizards-related imports from China. Cocks acknowledges Hasbro has been working overtime on logistics, urging a more foreseeable and favorable U.S. trade policy environment, echoing The Toy Association's advocacy for zero tariffs on toys and games globally.
Cocks shared that Hasbro remains cautiously optimistic about how tariffs might impact its Wizards products. Magic, for instance, recorded a surging business during the first quarter of 2025-2026, which largely contributed to the division's impressive 46% revenue growth. Cocks attributes this growth to the game's continued strength in licensing, particularly the upcoming crossover with Final Fantasy, set to release on June 13, already breaking records as the best-selling Magic set to date.
Curious about more io9 news? Stay tuned for the latest on Marvel, Star Wars, and Star Trek releases, the next chapter for the DC Universe on the big and small screens, and all there is to know about the future of Doctor Who.
Insights:
- Hasbro uses an "asset-light sourcing model" to swiftly shift production and mitigate tariff effects[1]
- The company anticipates a potential $100 million to $300 million hit to its bottom line due to tariffs, accelerating its $1 billion cost savings plan[1]
- Raising prices is considered likely to maintain profitability, with a focus on consumer-friendly price points[1]
- Smaller businesses in the toy industry are at risk of going out of business due to current tariff policies[2], reflecting the substantial risk to people's livelihoods in both the U.S. and China.
- In contrast to other businesses, Hasbro has been navigating the complex trade environment, bolstered by its substantial digital business and domestic production of board games.
- On the topic of the future, Hasbro's CEO, Chris Cocks, remains cautiously optimistic about the potential impact of tariffs on its Wizards products, including Magic: The Gathering, citing impressive revenue growth and upcoming crossovers.
- As global tech industry giants like io9 report on upcoming releases, it's essential to consider the impact of tariffs on smaller businesses within the toy industry, which face a significant risk of failure.
- Specialized businesses like Wizards of the Coast have minimized their tariff exposure, with most of their production based in tariff-exempt zones, such as Texas, North Carolina, Kyoto, Japan, and Europe, but still acknowledge the risk given China's status as a major manufacturing hub.
