By Connor Hart

Shares of Mattel and Hasbro fell after President Trump unveiled a sweeping new tariff plan.

Mattel's stock price sank 6%, to $18.67, in postmarket trading, while Hasbro's declined 4%, to $60.19. Through Wednesday's close, shares of Mattel have edged 2.5% higher in the past year. Shares of Hasbro have climbed 13%.

Overall, about 80% of toys are made in China. Under Trump's new plan, which adds a 34% tariff, the base tariff rate on Chinese imports will be 54%.

Companies including Mattel and Hasbro, though, have taken steps to diversify from the country as part of a longer-term shift accelerated under tariff threats during Trump's first term.

Mattel has spent the past few years building out a supply chain that isn't overly reliant upon any one country, executives previously told The Wall Street Journal. The maker of Barbie dolls and Hot Wheels cars plans to have no singular country account for more than a quarter of its total productions by 2027. Currently, it produces less than 40% of its toys in China.

Rival toymaker Hasbro currently manufactures about 40% of its products in China, President of Toys, Licensing & Entertainment Tim Kilpin previously said. The Nerf and Play-Doh maker has actively worked to diversify its operations over the past few years, including opening new facilities in Vietnam, which will see a 46% tariff under Trump's new plan.

"Everyone is trying to pull the same levers to minimize the impact, but you can only do so much," Kilpin said last month at the New York Toy Fair. "At some point, there's no way that consumers won't see this come through in the prices that they're paying for toys."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

April 02, 2025 19:32 ET (23:32 GMT)

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