Toys made by Mattel, Hasbro and others can be found at Macy’s stores in New York.
Staff | Reuters
Shares from major toy manufacturers gathered on Monday after the US agreed to temporarily reduce Chinese tariffs.
The contract suspends most tariffs and other trade barriers for the 90-day period. This includes President Donald Trump reducing China’s imports to 30%.
Stocks Mattel Jumped over 10% on Monday, Hasbro It rose 6.5% Yack It rose by more than 15% Funko It rose by a whopping 46.4%.
The rally surpassed Hasbro’s stocks above trading levels since early April, before Trump first announced “mutual tariffs” on dozens of trading partners. The remaining toy stocks are below the closing price on April 1st.
The stock was being driven by Wall Street as investors expected to produce hiccups and price increases due to the tariff scheme. The toy industry is heavily dependent on China’s supply chains, and toy manufacturers are at the mercy of trade policies. Bank of America estimates that both Mattel and Hasbro sauces are about 40% of US products from China.
Last month, Hasbro estimated that if Trump’s 145% Chinese obligations were held, it would be considered a final $300 million hit.
Mattel also warned last week that it was taking mitigation measures to completely offset costs associated with Trump’s trade war with China, including prices hikes in the US.
The companies had previously issued forecasts that expected a 25% tariff on Chinese imports. Mattel retracted the guidance earlier this month, citing the macroeconomic volatility and uncertainty surrounding US tariffs. Meanwhile, Hasbro maintained its full-year guidance issued last quarter, but warned investors about the uncertainty of the current tariff environment.
Representatives from Hasbro, Mattel, Jakks and Funko did not immediately respond to CNBC’s request for comment.
