Will Your Kid’s Xmas Toy DOUBLE in Price?!

Hasbro’s CEO has warned that escalating tariffs on imports from China and Vietnam are pushing toy prices sharply higher, with tangible impacts for consumers and the toy industry this coming fall.

At a Glance

  • Hasbro faces at least a 30% tariff on Chinese imports and 20% on Vietnamese goods.
  • Increased duties could force U.S. toy prices up by fall.
  • Tariff pressure could cost Hasbro between $60 million and $180 million in profit.
  • Supply chain adjustments aim to reduce China dependency from ~50% to under 40%.
  • Hasbro is diversifying into Vietnam, India, and Indonesia to curb future risks.

Tariffs Driving Price Shock

Hasbro CEO Chris Cocks told CNN’s The Assignment that current tariffs—30 percent on China and 20 percent on Vietnam—are “pretty significant” given both countries are major toy suppliers. Echoing a warning from April, Cocks said the fallout could rival the drop in toy industry sales during the 2008–2009 recession. The company estimates tariff-driven profit losses could range from $60 million to $180 million in 2025, depending on how deep the cost pressure goes.

The concern stems from rising duties imposed under the current trade policy, with Chinese toy imports now facing an average 30% tariff, and Vietnamese products not far behind at 20%. These two countries combined account for the majority of Hasbro’s physical product sourcing, making the company highly sensitive to geopolitical changes. 

In a bid to absorb some of the shock, Hasbro had previously adjusted its product lines and staggered release schedules, but internal models now show that U.S. retail toy prices will inevitably rise—likely before the end of the year.

Watch a report: Hasbro CEO warns of tariff-driven toy price hikes.

Strategic Shift in Supply Chain

To blunt the impact, Hasbro is aggressively restructuring its global supply chain. The company plans to reduce its dependence on China from around 50% to below 40% within two years, while expanding production in Vietnam, India, and Indonesia. This shift, part of a larger operational overhaul unveiled earlier in 2025, is designed to make the company more resilient to future geopolitical friction and cost volatility.

In parallel, Hasbro is leaning harder on less tariff-exposed verticals such as licensing deals and digital gaming, which offer more stable margins. Still, the manufacturing pivot takes time—and shoppers are unlikely to see relief in the near term. Industry analysts say up to 60% of Hasbro’s products sit in vulnerable price bands where even modest increases can drive consumers toward lower-cost competitors or delayed purchases.

Consumer Fallout and Broader Outlook

The broader market impact could be significant. Average U.S. tariff rates hit a multi-decade high in early 2025, peaking at 30% on some categories of Chinese imports. Retailers across sectors, not just toys, are preparing for holiday season turbulence as inflationary pressures cascade down to store shelves.

Although Hasbro is banking on evergreen titles like Monopoly and its robust digital portfolio to buffer some losses, the CEO’s message is unambiguous: price hikes are imminent. And with the company projecting $1 billion in cost cuts and only modest sales growth through 2027, the warning signs for the industry are clear. Unless trade policy shifts, American families may find themselves paying a steep new price for holiday cheer.

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