Trump’s Tariff Delay on Toys Has Hasbro Breathing Sigh of Relief
Bloomberg
Published Aug 13, 2019 01:58PM ET
Updated Aug 13, 2019 04:38PM ET
Trump’s Tariff Delay on Toys Has Hasbro Breathing Sigh of Relief
(Bloomberg) -- Hasbro Inc (NASDAQ:HAS). has a message to the Trump administration after the decision to put off imposing tariffs: Thanks for listening.
The toymaker said in an email to Bloomberg that an announced delay in the levies until Dec. 15 on some products will help it mitigate the impact on U.S. consumers during the upcoming holiday season. The change will also give the company more time to update global sourcing plans.
The decision to delay some of the tariffs from Sept. 1 was an attempt to spare consumers some pain during the holiday season, President Donald Trump told reporters on Tuesday. Consumer goods prices have already been on the rise, and retailers unable to swallow the tariff hikes were expected to raise prices on impacted products ahead of the critical holiday period.
“We appreciate the administration listening to our concerns,” spokeswoman Julie Duffy said.
Hasbro gained 4% to $117.65 at 1:37 p.m. in New York, on pace for its biggest gain in three weeks, while fellow toymaker Mattel Inc (NASDAQ:MAT). was up 4.9% to $11.54.
The Toy Association, an industry trade group, echoed Hasbro’s message, saying that the delay “saved the holiday season” while adding that tariffs are the wrong approach to U.S.-China trade relations.
Toy companies are especially sensitive to fluctuations in the holiday shopping season, with the bulk of their sales coming in the second half of the year.
Consumer groups are still concerned, however, since the delay kicks the can down the road and doesn’t resolve the fundamental uncertainty that companies have faced since trade tensions with China flared up.
“What we really need is an effective strategy to address China’s unfair trade practices by working with our allies instead of using unilateral tariffs that cost American jobs and hurt consumers,” David French, a spokesman for the National Retail Federation, said.
(Updates to include responses from toy and retail industry groups.)
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Written By: Bloomberg
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