The CEO of Hasbro has recently revealed that he expects toy prices will increase from August through October.
Hasbro ranks among the top American toy companies globally, famous for brands such as My Little Pony, Play Doh, Transformers, GI Joe, Candy Land, Scrabble, Nerf, and Dungeons & Dragons.
Chris Cocks has served as Hasbro’s CEO since February 2022, and predicts the Trump administration’s tariffs will eventually hit the industry.
Although Hasbro hasn’t yet enacted major price increases, its primary international suppliers operate out of China and Vietnam. Recently, a 30 percent minimum tariff has been imposed on Chinese goods, and an agreement dictates that a 20 percent tariff will apply to products from Vietnam.
Cocks believes it’s only a matter of time before the levies make an impact.
“If prices within the industry rise, consumers can likely expect to see changes from August to October,” stated Cocks on CNN’s The Assignment podcast, basing this on toy production timelines.
He explained that the production timeline for toys typically takes three to five months. The market was rocked in April when Trump imposed a minimum 10 percent tariff on US imports.
The stock market plummeted as a result, forcing the administration to issue a 90-day pause.
The president has remained steadfast on applying pressure to manufacturers to make products in the US.
Hasbro CEO Chris Cocks revealed during a recent podcast episode that he expects consumers will feel the impacts of Trump’s tariffs in August through October
Hasbro is the maker behind iconic brands including My Little Pony, Transformers, GI Joe, Candy Land, Dungeons & Dragons, and Scrabble
Crooks revealed that it’s difficult to shift production from foreign countries to exclusively in the US
Cocks told Cornish that although Hasbro has shifted it’s supply to increase US-based production, it’s easier said than done.
‘If you took the same toy and manufactured it in the US, labor would make up 80 to 90 percent of the cost,’ he explained.
Cocks said transitioning production to the US would require paying workers more due to American labor requirements.
This would mean that consumers would have to pay more for products. For example, a doll typically sold for $10 would increase to $18.
The federal administration has stood by the tariffs, claiming that foreign countries should absorb the costs.
The economic policy was initially in line with Trump’s ‘America First’ mentality, attempting to alleviate the country’s reliance on foreign products.
Cocks said the reality was different, arguing, ‘It’s always a business working with another business that absorbs things.’
Despite the tumultuous time for manufacturers, Cocks said since Hasbro relies on profits from it’s gaming division, he’s not too concerned about the company losing money due to the tariffs.
Cocks said it’s difficult to transition production from foreign countries like China to the US (Pictured: Play-Doh, manufactured by Hasbro)
Cocks estimated some products could go from $10 to $18 due to the tariffs. He added that his concern was low due to the company’s reliance on its gaming division
‘I feel more for my toy industry CEO peers than I do necessarily for my day-to-day challenges,’ he confessed.
Toy companies like Mattel have also admitted to feeling the brunt of Trump’s tariffs, with the manufacturer detailing a grim prediction in its 2024 financial report.
‘Changes in the amount, scope and nature of the tariffs in the future… could increase Mattel’s product costs and other costs of doing business,’ the report stated.
‘Other changes in laws or regulations in the United States and/or in other major markets, such as China, in which Mattel operates… may also increase Mattel’s product costs and other costs of doing business and in each case reduce Mattel’s earnings and liquidity.’
The CEO estimated that consumers should start bracing for increased costs when the fall approaches
The Hasbro CEO added that manufacturing products in the US could mean increased labor costs (Pictured: Cocks with James B. Laster (right) at the 91st anniversary of the Hollywood Christmas Parade in 2023)
Mattel manufactures almost half of its products in China and roughly another 10 percent in Mexico.
China is responsible for a significant percentage of US imports, and currently has a 30 percent tariff from the Trump administration.
The percentage has decreased significantly after Chinese products briefly faced tariffs as high as 145 percent.
The future of trade negotiations remains uncertain as Trump pushed back the tariff pause to August 1.
