Hasbro CEO Warns Of Possible Price Increases Due To Tariffs
On Wednesday, March 5th, Hasbro CEO Chris Cocks warned consumers via an interview with Yahoo! of a price increase on Hasbro toys due to tariffs. The tariffs, set in retaliation to US President Donald Trump's tariffs against Canada, Mexico, and China, may increase the price of manufacturing Magic: The Gathering cards, among other things. What will this mean for consumers? Read on, and we will explain.
The Tariff Situation
According to Yahoo! Finance, Trump has instituted a 25% tariff on Canadian and Mexican goods and a 20% tariff on Chinese goods. As a response, Canada is levying 25% onto CA$30 Billion worth of imports into the United States. Furthermore, China is imposing "a 15% tariff on US chicken, wheat, corn, and cotton products and an additional 10% tariff on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products." Mexico will be unveiling their tariffs on Sunday.
What all of this means is an increase in the price of imports from those nations. This could theoretically affect Hasbro's capability to produce various branded toys and other goods. Because we currently don't know what Mexico will push to increase prices on, we can't be sure that this will, or won't, affect Magic, but it's entirely plausible that it will. If the United States has to foot more of the bill for production, Cocks posits that consumers may have to pay 50% more for Hasbro's toys.
Not All Hope Is Lost For Hasbro
With tariffs potentially raising the price of Hasbro goods very soon, not all hope is lost just yet. Currently, Magic: The Gathering cards are produced in Dallas, Texas, by way of Cartamundi North America, a card manufacturing company. This bodes a bit better for the beloved collectible trading card game.
However, one may expect the retaliatory tariffs from Mexico to affect the prices of Secret Lair drops. While the cards aren't manufactured fully by Mexico, they are packaged there. Because of this, there may be a price increase for Secret Lair packaging. As such, overall Magic prices may go up.
What's A Corporation To Do?
And now, let's open the floor to you, dear readers. What do you think about the Trump Tariffs potentially affecting the cost of Magic: The Gathering cards and other Hasbro toys? Do you think Hasbro has another recourse? These tariffs also follow hot on the heels of the announced price increases for Universes Beyond products. Is there an out for the company? Sound off below!