Hasbro's Wizards of the Coast Navigating Tariff Woes with Ease... For Now
Hasbro Seeks Exemption from Tariffs for Toys, Given Persistent Sales of Magic: The Gathering Cards
The Trump administration's imposed tariffs have left several businesses reeling, but toy giant Hasbro seems to be weathering the storm somewhat nicely, particularly when it comes to its Wizards of the Coast division.
During a recent investor call, CEO Chris Cocks ascertained that the company is comfortably poised in the current international trade scenario. The digital nature of their games business and the domestic production of most board games insulate them from the brunt of the tariffs. Wizards of the Coast, responsible for the universally beloved Dungeons & Dragons and Magic: The Gathering, maintains low tariff exposure.
The division's supply lines are primarily based in the US, specifically in Texas and North Carolina, while international manufacturers are located in Kyoto, Japan, and Europe—places currently exempt from the tariffs. It's worth noting, though, that China is still significantly utilized as a manufacturing hub, with D&D boxed sets being the only Wizards imports from the country, which faces the heaviest of these tariffs.
Cocks acknowledged that they've been managing "more complex logistics" in the face of these tariffs and voiced a call for a "more predictable and favorable U.S. trade policy environment." He emphasized that Hasbro wholeheartedly supports the Toy Association's advocacy for zero tariffs on toys and games globally.
Tariffs, according to Cocks, can lead to increased consumer prices, potential job losses, and reduced profits for shareholders. However, for the moment, Hasbro isn't too concerned regarding the impact on its Wizards products. Magic: The Gathering has experienced a surging business in the first quarter of 2025-2026, contributing significantly to the division's 46% revenue growth.
Cocks attributes this growth to the "continued strength in licensing," notably the upcoming crossover with Final Fantasy. The Universes Beyond set releases on June 13, with pre-orders turning it into the best-selling Magic set ever.
As for the wider impact on Hasbro, despite its domestic production, the company faces potential costs of up to $300 million due to these tariffs, causing concerns[1][2]. But for the time being, Hasbro's Wizards of the Coast division seems to be handling the situation quite well.
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- Despite the challenges posed by tariffs, Hasbro's Wizards of the Coast division, known for games like Dungeons & Dragons and Magic: The Gathering, appears resilient, with the future looking promising given the division's 46% revenue growth in the first quarter of 2025-2026.
- The growth can be attributed to several factors, including the "continued strength in licensing" and the upcoming crossover with Final Fantasy, a move that has resulted in the Universes Beyond set becoming the best-selling Magic set ever.
- The digital nature of the games business, along with domestic production, has insulated Hasbro from the brunt of tariffs, although the company is facing potential costs of up to $300 million due to these tariffs, causing concerns for the broader business.
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