Austin, Texas – Hasbro, the popular toy maker, is facing potential financial challenges due to President Donald Trump’s proposed 145% tariff on imports from China. If implemented, Hasbro estimates it could suffer a significant $300 million blow to its profits. Despite posting better-than-expected earnings, the company’s outlook remains uncertain as trade tensions continue to impact its operations.
During a recent earnings call, Hasbro’s CFO and COO Gina Goetter revealed that the company’s full-year guidance takes into account various scenarios regarding China tariffs, with potential gross impacts ranging from $100 million to $300 million in 2025. CEO Chris Cocks emphasized that while no company is immune to the effects of tariffs, Hasbro remains resilient thanks to its diverse business portfolio and strategic approach.
The toy segment of Hasbro’s business is particularly vulnerable to tariff increases, as a significant portion of its products are manufactured in China. To mitigate potential losses, the company is exploring options to diversify its supply chain by moving production to other countries. Although this shift may come with added costs, Hasbro is determined to navigate through the challenges posed by the ongoing trade war.
Despite the complexities of restructuring its manufacturing processes, Hasbro is committed to accelerating a $1 billion cost savings plan to offset the impact of tariffs on its operations. The company acknowledges that price hikes may be unavoidable, but aims to minimize the burden on consumers while ensuring sustainable growth.
Both Goetter and Cocks emphasized the need for flexibility in adapting to changing trade policies, expressing hope for a more stable and favorable environment in the future. Hasbro’s strategic approach to managing the impacts of tariffs highlights the company’s commitment to navigating through uncertain times while prioritizing the needs of its customers and shareholders.