For toymaker Hasbro, trade wars are no fun
PAWTUCKET, R.I. » Shares of Hasbro plunged Tuesday after the company revealed that the trade war is wreaking havoc on its supply chain and creating confusion among customers for its toys.
The company said price hikes may be on the way for consumers as it offsets rising costs.
Hasbro CEO Brian Goldner said they’ve seen multiple dates for the rollout of “List 4” tariffs, which include toys, models and puzzles. Those tariffs, which had been postponed in August over fears that it would affect the holiday shopping season, are now slated to roll out on Dec. 15.
Hasbro is the latest example of how companies continue to struggle with President Donald Trump’s tariffs — even after he delayed some of them.
Hasbro says the shifting dates led to cancelled orders in the third quarter and the company was unable to meet demand as it adjusted operations to accommodate companies that buy its toys and games.
“Since the administration began discussing tariffs, we have outlined the ripple effect they would have on our business,” Goldner said. “We’ve spoken about the changing order patterns in the U.S., whether or not tariffs are ultimately enacted. In the third quarter, the threat of and the implementation of tariffs in certain instances impacted our shipments and our ability to fully meet demand.”
Other tariffs, including a 25% tariff on $200 billion worth of goods, have already been enacted in September and hit game sales for Hasbro. Nerf sales are also being affected, Goldner said.