Hasbro Advocates for Tariff-Free Toys Due to Continued High Demand for Magic: The Gathering Cards
Months after the implementation of U.S. tariffs, Hasbro, a popular toy and board game company, has managed to mitigate its impact, unlike many other firms. According to CEO Chris Cocks, Hasbro is well-positioned in the current global trade scenario due to the nature of its business.
The games division of Hasbro, which encompasses digital games and its board game subsidiary, Wizards of the Coast, has been mostly unaffected by tariffs. The bulk of Wizards of the Coast's production takes place in the United States, with domestic manufacturing stations in Texas and North Carolina. Additionally, international manufacturers are based in Kyoto, Japan, and Europe, both exempt from the tariffs.
Licensed products such as Dungeons & Dragons and Magic: The Gathering have low tariff exposure. In fact, the only Wizards-related import from China—D&D boxed sets—makes up only a minor part of their operations. Despite China being a major manufacturing hub, Hasbro acknowledged the added complexities in its logistics due to trade policies.
CEO Cocks expressed a need for a more predictable and favorable U.S. trade policy environment, endorsing the Toy Association's advocacy for zero tariffs on toys and games globally. He emphasized that tariffs result in increased consumer prices, potential job losses, and reduced profits for shareholders. Hasbro's guidance remains unchanged; however, the company anticipates prolonged tariff conditions to create structural costs and heighten market unpredictability.
In a positive note, Magic: The Gathering has shown significant growth in the first quarter of 2025-2026, largely contributing to a 46% revenue growth for the division. This positive outlook is attributed to the "continued strength in licensing," particularly the pending partnership with Final Fantasy. The upcoming Universes Beyond set, releasing on June 13, has already set records as the best-selling Magic set ever following strong pre-orders.
The enrichment data suggests that Hasbro has been employing several strategies to combat tariffs. These include diversifying production, implementing cost savings plans, and concentrating on high-margin segments such as Wizards of the Coast and digital gaming. Despite these efforts, Hasbro still estimates a potential hit of $100 million to $300 million on its profit margins due to tariffs.
- The games division of Hasbro, which comprises digital games and its board game subsidiary Wizards of the Coast, has been less affected by tariffs due to its mostly domestic and international manufacturing stations.
- CEO Chris Cocks has endorsed the Toy Association's advocacy for zero tariffs on toys and games globally, stating that tariffs lead to increased consumer prices, potential job losses, and reduced profits for shareholders.
- Hasbro anticipates prolonged tariff conditions to create structural costs and heighten market unpredictability despite employing strategies such as diversifying production, implementing cost savings plans, and focusing on high-margin segments like Wizards of the Coast and digital gaming.
- The future looks promising for Hasbro as the Magic: The Gathering division, which has shown significant growth, contributes to a 46% revenue growth for the division, with the upcoming Universes Beyond set expected to break records as the best-selling Magic set ever.
