Hasbro Seeks Tariff-Free Toys due to Continued Sales of Magic: The Gathering Cards
Hasbro, with its subsidiary Wizards of the Coast, is amidst the strife caused by tariffs, potentially affecting popular games like Dungeons & Dragons (D&D) and Magic: The Gathering.
D&D: The Tariff-Heavy Contender
- China's Tariff Contribution: D&D box sets, manufactured in China, are the main contributors to the $10 million in tariffs imposed on Wizards of the Coast [1].
- Domestic and Continental Production: Despite this, most D&D products are printed domestically or in continental locations, safeguarding them from the brunt of tariffs, save for the box sets [3].
- Possible Price Hike: A price rise for the D&D box sets might occur because of tariffs, but an officially announced price change has yet to emerge [3].
Magic: The Gathering: The Tariff-Resilient Champion
- Low Tariff Exposure: Thanks to manufacturing in the U.S. (North Carolina and Texas) and Japan, Magic: The Gathering products show minimal tariff exposure [1].
- Anticipated Price Stability: Hasbro anticipates negligible price increases for Magic: The Gathering products due to their minimal tariff exposure [5].
- Strategic Pricing Approach: The company aims to preserve price points on key Magic: The Gathering products, potentially snatching market share from competitors hit harder by tariffs [1].
Production Landscape and Tariff Implications for Hasbro
- Tariff Impact on Hasbro: Although Wizards of the Coast has limited exposure, Hasbro projects a gross tariff impact of $100 million to $300 million in 2025 across its operations, with a net profit impact estimated between $60 million and $180 million [2].
- Diversification Strategies: To mitigate risk, the company is considering broadening its manufacturing sources, since about half of its toy and game volume is sourced from China [2].
- Remarkable Performance: Despite challenges, Wizards of the Coast recorded a 46% increase in sales in Q1 2025, primarily due to strong performances in Magic: The Gathering and D&D [1][2].
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[1] Enrichment Data Source 1[2] Enrichment Data Source 2[3] Enrichment Data Source 3[5] Enrichment Data Source 5
- Io9 discusses the impact of tariffs on Hasbro's gaming industry with a focus on games like 'Dungeons & Dragons' and 'Magic: The Gathering'.
- The 'Dungeons & Dragons' box sets, primarily manufactured in China, bear the brunt of the $10 million in tariffs imposed on Wizards of the Coast.
- Despite this, the majority of 'Dungeons & Dragons' products are printed domestically or in continental locations, shielding them from high tariffs, except the box sets which may lead to a potential price rise.
- Magic: The Gathering, made in the U.S. and Japan, shows minimal tariff exposure, with Hasbro anticipating no significant price increases for the products, as a strategic move to outperform competitors more affected by tariffs.
