Hasbro’s “cautious” approach to tariffs depends on more licensed Magic: The Gathering and potential layoffs

Toy and game giant Hasbro assured investors that US tariffs, primarily levied against China, would be a “challenge” that the company is “well positioned” to tackle. But that resiliency comes at the cost of a heavier reliance on proven cash cows such as digital licensing and Magic: The Gathering — or both, in the case of Universes Beyond. Hasbro’s executives also hinted at the strong possibility of layoffs and price increases if global trade relief doesn’t come soon.

CEO Chris Cocks and CFO Gina Goetter spoke to Hasbro’s somewhat insulated position during an April 24 earnings call, saying that investments in digital licensing and an already strong US production for its tabletop games, along with the continued gangbusters success of MTG should buffer any tariff-based stress. Hasbro will face a quoted $60-180 million net profit impact due to tariffs, and an estimated $100-300 million gross impact throughout 2025, if the current 145% tariff against goods from China holds steady.

“On tariffs, we acknowledge the challenge posed by the current global trade environment,” Cocks said during his opening remarks. “Our U.S. Games business benefits from largely digital or domestic sourcing, maintaining low COGS (cost of goods sold) and healthy margins. We make many of our board games just up the road in East Longmeadow, MA, not far away from where Milton Bradley printed his first board games in the 1860s.”