Hasbro Pursues Tariff-Free Toys due to Continued Sales of Magic: The Gathering Cards
After a month since the implementation of the Trump administration's tariffs, several companies have felt the effects, but Hasbro seems to be one of the less affected. During a recent investor call, CEO Chris Cocks indicated that Hasbro is well prepared to navigate the current global trade situation, largely due to its predominantly digital games business and domestic manufacturing for its board game division. The Wizards of the Coast, responsible for popular card games like Dungeons & Dragons and Magic: The Gathering, exhibits low tariff exposure with domestic supplies stationed in Texas and North Carolina, and international manufacturers in Japan and Europe, currently exempt from tariffs.
Despite its resilience, Hasbro has acknowledged the need for a more stable and favorable US trade policy environment. Tariffs raise consumer prices, potentially lead to job losses, and lower profits for shareholders. Cocks urged for a zero-tariff policy on toys and games globally, echoing the Toy Association's call.
The Chinese market has been hit hardest by the tariffs, serving as a significant manufacturing hub for Hasbro. The only exception is D&D boxed sets, imported from China. However, Cocks highlighted the need for more complex logistics within the company due to the tariffs.
According to Cocks, Magic: The Gathering has experienced a surging business in the first quarter of 2025-2026, contributing to the division's 46% revenue growth. The card game's robust licensing, particularly the upcoming crossover with Final Fantasy, is to thank for this success. The Universes Beyond set, scheduled for release on June 13, has already set records as the best-selling Magic set ever, fueled by pre-orders.
Even though specific details about the impact on Wizards of the Coast are scant, the general impact of tariffs on Hasbro and the broader toy industry indicates that many companies are experiencing challenges in managing costs and maintaining consumer affordability. As the toy industry, including smaller businesses, grapples with tariff pressures, companies worldwide are adjusting prices, working towards consumer-friendly price points, and accelerating cost savings plans to offset financial hits potentially exceeding $300 million this year.
[Sources: 1, 2, 3]
- The surge in Magic: The Gathering's business, largely due to its robust licensing and upcoming crossover with Final Fantasy, indicates a promising future for the digital games sector within the toy industry.
- Gizmodo recently reported on the impact of tariffs on the toy industry, suggesting that companies, including Hasbro and Wizards of the Coast, are having to adjust prices and implement cost savings plans to offset potential losses exceeding $300 million.
- The future of the toy industry, as depicted by the instance of Hasbro, shows a shift towards domestic manufacturing and a predominantly digital games business, which may help companies navigate unstable trade situations and tariff pressures.
- Io9 and other financial news outlets have been highlighting the potential job losses and lower profits for shareholders caused by tariffs in the toy industry, emphasizing the need for a zero-tariff policy as called for by The Toy Association and Hasbro CEO Chris Cocks.
