The strategy: Toy and gaming giants Hasbro and Mattel are moving quickly to mitigate the effects of US tariffs.
- Hasbro’s efforts to diversify its manufacturing footprint will reduce the share of its US toy and game volume from China to below 40% from 50% over the next two years. The company doesn’t source from Canada and has “minimal” imports from Mexico.
- Mattel has also spent recent years broadening its supply chain. It now sources products from seven countries and expects China to represent less than 40% of its global toy production this year, with Mexico accounting for less than 10%.