Austin, Texas – Hasbro, a major toy maker, faces a potential $300 million hit to its bottom line if President Donald Trump’s 145% levy against imports from China remains in place. Despite posting better-than-expected earnings, the company is feeling the impact of the ongoing trade war between the White House and the toy industry’s largest manufacturer.

During an earnings call, Hasbro’s chief financial officer and chief operating officer Gina Goetter outlined various scenarios regarding China tariffs, estimating a gross impact of $100 million to $300 million across the enterprise in 2025. CEO Chris Cocks expressed confidence in Hasbro’s resilience, citing the strength of its games and licensing businesses in adapting to the changing tariff environment.

The company acknowledges the challenges presented by prolonged tariff conditions, highlighting the potential for higher consumer prices and job losses as costs rise and profits decrease. In response to the tariffs, Hasbro is exploring options to diversify its supply chain and reduce its reliance on Chinese manufacturing for its toy segment.

While some products may be more difficult to source outside of China due to specialized capabilities, Hasbro is looking to strategically shift manufacturing to other countries where feasible. The company anticipates significant manufacturing changes in 2026 and is accelerating a $1 billion cost savings plan to mitigate tariff pressures.

Despite the need for price hikes to offset the impact of tariffs, Hasbro aims to minimize the burden on consumers while remaining agile in adapting to the evolving trade policy landscape. Both Goetter and Cocks emphasize the importance of flexibility in their approach, expressing hope for a more stable and favorable U.S. trade policy environment in the future.