Toys from Hasbro Seek Tariff Exemption as Magic: The Gathering Cards Remain Popular Sales Items
Nearly a month has passed since the Trump administration's tariffs took effect, and several companies have felt the impact. However, Hasbro seems to have escaped the brunt of these measures. In a recent investor call, CEO Chris Cocks stated that the company is well-positioned in the current global trade situation.
The games division of Hasbro, including popular brands like Magic: The Gathering and Dungeons & Dragons, has a minimal exposure to tariffs. Most of its games are digital or domestically produced, with Wizards of the Coast, handling the two aforementioned brands, being stationed in Texas and North Carolina within the United States. International manufacturers for Wizards are located in Kyoto, Japan or Europe, both currently exempt from tariffs.
While China, hit hard by the tariffs, remains a significant manufacturing hub, Hasbro's Dungeons & Dragons boxed sets are the only Wizards-related import from the country. Despite this, Hasbro is dealing with more complex logistics, and is advocating for a more predictable and favorable U.S. trade policy environment. The company supports the Toy Association's call for zero tariffs on toys and games globally.
In his statement, Cocks stated that tariffs lead to increased consumer prices, potential job losses, and reduced profits for shareholders. However, the company's guidance remains unchanged due to the robust performance of its games and licensing businesses. Despite this, prolonged tariff conditions create unpredictability in the market and structure costs for the company.
Hasbro's Magic segment has seen a surge in business for the first quarter of 2025-2026, credited to the division's 46% revenue growth. Cocks attributed the card game's continued strength, in particular the upcoming crossover with Final Fantasy, to its "continued strength in licensing." Pre-orders for the Universes Beyond set, slated for release on June 13, have already made it the best-selling Magic set ever.
In summary, while Hasbro's Wizards of the Coast division, responsible for popular brands like Magic: The Gathering and Dungeons & Dragons, experiences less direct tariff impact due to its U.S. manufacturing footprint, it remains exposed to the broader systemic effects of the Trump administration’s trade policies, including higher operational costs and price pressures.
- Hasbro's games division, such as Magic: The Gathering and Dungeons & Dragons, predominantly consists of digital games or domestically produced ones, minimizing exposure to tariffs.
- Wizards of the Coast, the division responsible for Magic: The Gathering and Dungeons & Dragons, has manufacturing sites outside the US, in Japan and Europe, currently exempt from tariffs.
- Despite having only Dungeons & Dragons boxed sets imported from China, Hasbro faces complex logistics issues due to the tariffs and advocates for a more stable and favorable U.S. trade policy environment.
- Hasbro's Magic segment reported a significant surge in revenue growth for the first quarter of 2025-2026, attributed to the division's licensing deals, like the upcoming Final Fantasy crossover.
