Hasbro Pursues Tariff-Free Toys Due to Continuous Demand for Magic: The Gathering Cards
Let's Talk Tariffs: How Hasbro and Magic: The Gathering are Navigating the Storm
The past month has seen the implementation (and semi-reversal) of the Trump administration's tariffs, causing ripples across various industries. Typically, Hasbro isn't one of the companies feeling the heat.
During a recent investor call, Hasbro's CEO Chris Cocks shared his optimism about the brand's resilience in this global trade climate. Chiefly, the games business, including the digital realm and domestic board game production, shields Hasbro from the tariff storm. The company's Magic-making division, Wizards of the Coast, also boasts a relatively low tariff exposure, with its domestic supply stations in Texas and North Carolina, and international manufacturers residing in Kyoto, Japan or Europe - currently tariff-exempt zones.
In stark contrast, China, hit hard by the tariffs, remains a significant manufacturing hub. Nevertheless, the only tariff-affected Wizards products coming from China are the boxed Dungeons & Dragons sets. However, Cocks acknowledged that Hasbro is handling more complex logistics and called for a more stable and favorable U.S. trade policy environment. He also endorsed the Toy Association's crusade for zero tariffs on toys and games globally.
While Cocks expressed concerns about prolonged tariff conditions causing structural costs and market unpredictability, he reassured investors that Hasbro's guidance remains unchanged. The brand's robust games and licensing businesses, alongside strategic flexibility, underpin this optimism.
As for Magic: The Gathering, Cocks reported a "surging business" in Q1 2025-2026, with the division's revenue growth skyrocketing by 46% to an impressive $346.3 million. The card game's continued success in licensing, especially its upcoming Final Fantasy crossover, has fueled this growth. The Universes Beyond set, launching on June 13, has already secured the title of the best-selling Magic set ever, even before its official release.
If you're craving more sci-fi, fantasy, and adventure updates, stay tuned for the latest on Marvel, Star Wars, Star Trek, the evolving DC Universe, and the future of Doctor Who.
Enrichment Insights:
- Low Exposure to Tariffs: Wizards of the Coast, particularly with Magic: The Gathering products, has low exposure to tariffs. The strategic distribution of its manufacturing facilities helps minimize the effects of tariffs on Magic: The Gathering.
- Strong Sales Performance: Despite the broader tariff challenges, Magic: The Gathering sales were up 45% in Q1 2025 compared to the previous year, reaching $346.3 million. This robust performance underscores the resilience of the brand against economic pressures.
- Strategic Pricing: Hasbro is aiming to maintain price points for key products, including Magic: The Gathering, to preserve customer loyalty and avoid price hikes. However, this is in contrast to the industry-wide potential for higher consumer prices due to tariffs.
- The Magic-making division of Hasbro, Wizards of the Coast, has a relatively low exposure to tariffs due to strategic distribution of its manufacturing facilities in tariff-exempt zones like Texas, North America, and Kyoto, Japan.
- Magic: The Gathering sales surged by 46% in Q1 2025-2026, reaching an impressive $346.3 million, despite broader tariff challenges, suggesting the brand's resilience against economic pressures.
- Hasbro aims to preserve customer loyalty by maintaining price points for key products, including Magic: The Gathering, despite potential industry-wide price hikes due to tariffs.
- Beyond Magic: The Gathering, investors can look forward to updates on various sci-fi, fantasy, and adventure franchises such as Marvel, Star Wars, Star Trek, the DC Universe, and Doctor Who for further insights on the future of these industries.
