Hasbro's CEO warns that toy prices could start to rise in the fall because of tariffs

CNN

09-07-2025

America's toy prices could rise later this year, particularly if higher tariffs take effect, Hasbro CEO Chris Cocks told CNN's Audie Cornish, host of 'The Assignment' podcast.
Cocks said on this week's episode of 'The Assignment' that America's current 30% minimum tariffs on China and apparent agreement to place 20% tariffs on Vietnam's goods are 'pretty significant,' but not unexpected. China and Vietnam are Hasbro's main international suppliers.
'We've been around for a while,' Cocks said. 'We take a long-term view of things, and so our general reaction is: Be agile, but don't overreact.'
Hasbro, founded in 1923, produces well-known toys and games, including Play-Doh, Transformers, Candy Land and Dungeons & Dragons. Although Hasbro has not yet raised prices because of tariffs, Cocks said an increase could be coming.
'I would expect if prices are going to be raised across the industry, the consumer will probably start to see them in the August through October timeframe, just based on the production timelines associated with toys,' he said.
Cocks said toys typically take three to five months to hit store shelves after a retailer places orders for them.
About half of Hasbro's products are made in the United States, with the rest manufactured abroad, Cocks said. Over the past few years, Hasbro has shifted production to reduce reliance on China, increasing output in the US, Vietnam, Turkey and India. The company has also increased domestic production of board games in Massachusetts.
Trump has urged companies to manufacture in the US to avoid tariffs, a shift Cocks said is realistic for Hasbro. He pointed to 'Magic: The Gathering,' a billion-dollar card game, that is already made in North Carolina and Texas.
He said there may be room to expand some domestic production further. For instance, Play-Doh — made from wheat — is similar to edible dough and could be a candidate for US-based manufacturing.
Still, Cocks said relocating more manufacturing to the United States remains challenging. Labor is a significant cost, and unlike other industries, toys often require fine detailing by hand. That makes automation harder.
'If you took the same toy and manufactured it in the US, labor would make up 80 to 90% of the cost,' he said. For consumers, that means a doll sold for $10 now could cost up to $18 to maintain profit margins.
Cocks also pushed back on claims from officials like Commerce Secretary Howard Lutnick that foreign countries absorb tariff costs. 'It's always a business working with another business that absorbs things,' he said.
He said foreign suppliers have thin margins – about 2 to 3% – so they can't afford to absorb 10% tariffs, he said. Ultimately, Hasbro will pay more to import its products.
Cocks said Hasbro is better positioned than many in the toy industry to handle the pressure from new tariffs. Its games division is performing strongly and relies less on overseas manufacturing. He added that Hasbro's licensing business, which has grown 60% over the past three years, is especially valuable because it brings in 'pure profit.'
'It just gives us a lot more cushion,' Cocks said. 'I feel more for my toy industry CEO peers than I do necessarily for my day-to-day challenges.'