Toys exempt from tariffs are sought by Hasbro, as the sales of Magic: The Gathering cards continue to thrive
In the wake of the Trump administration's tariffs (and their semi-reversal), various companies have felt the heat. However, like a phoenix rising unscathed from the ashes, Hasbro seems to have weathered the storm rather well.
At a recent investors' gathering, the company's CEO, Chris Cocks, underscored Hasbro's resilience within the volatile global trade climate. Its digital games business, combined with its board game division's domestic manufacturing, provide a bulwark against import taxes. Wizards of the Coast, responsible for managing gaming juggernauts like Dungeons & Dragons and Magic: The Gathering, boasts low tariff exposure, with international manufacturers stationed in Kyoto, Japan, and Europe – areas currently exempt from the tariffs.
China, unfortunately, bears the brunt of those tariffs, but it still serves as a crucial manufacturing hub. The only Wizards-related imports from China are the D&D boxed sets, albeit the impact of these tariffs on Wizards' tariff exposure remains unspecified. Cocks acknowledged that Hasbro has engaged in more intricate logistics to offset the tariff costs, calling for a more predictable and favorable U.S. trade policy landscape.
The Toy Association's advocacy for zero tariffs on toys and games globally resonates with Hasbro. "Tariffs equate to higher consumer prices, potential job losses as we adapt to these added costs, and reduced profits for our shareholders," Cocks stated. However, Hasbro's guidance remains unchanged, anchored by its robust games and licensing businesses and strategic flexibility – although prolonged tariff conditions impose structural costs and heighten market volatility.
Currently, Hasbro is taking the tariff situation with a grain of salt when it comes to its Wizards products. Magic is enjoying a surging business during the first quarter of 2025-2026, contributing significantly to its division's 46% revenue growth. Cocks attributes this success to Magic's "continued strength in licensing," notably the upcoming crossover with Final Fantasy. The Universes Beyond set releases on June 13, and pre-orders have already made it the best-selling Magic set in history.
Looking ahead, the future promises excitement for Marvel, Star Wars, Star Trek, DC Universe, and Doctor Who fans. Amidst the turbulence of tariffs, Hasbro continues to forge ahead, making strategic decisions that keep it solidly in the game.
- Despite the impact of tariffs on various companies, Hasbro's CEO, Chris Cocks, emphasized the company's resilience in the volatile global trade climate, citing its digital games business and domestic manufacturing of board games as bulwarks against import taxes.
- Wizards of the Coast, a division responsible for managing gaming juggernauts like Dungeons & Dragons and Magic: The Gathering, has low tariff exposure, with international manufacturing stations in Kyoto, Japan, and Europe – areas currently exempt from the tariffs.
- Despite China serving as a crucial manufacturing hub, China bears the brunt of these tariffs, with only Wizards-related D&D boxed sets being imported, the impact of which on Wizards' tariff exposure remains unspecified.
- Hasbro's guidance remains unchanged, anchored by its robust games and licensing businesses, strategic flexibility, and the continued growth of its licenses like Magic: The Gathering, which experienced a 46% revenue growth in the first quarter of 2025-2026.
- As the future unfolds, fans of Marvel, Star Wars, Star Trek, DC Universe, and Doctor Who can look forward to exciting developments from Hasbro, as the company continues to navigate the turbulence of tariffs and make strategies that keep it competitive in the games and toy industry.
