Shares of prominent toy manufacturers surged on Monday following an agreement by the U.S. government to temporarily ease tariffs on Chinese goods.
The deal, which is set to last for 90 days, includes the suspension of most tariffs and other trade barriers, specifically reducing the hefty 145% tax imposed by former President Donald Trump on Chinese imports down to 30%.
Stocks for Mattel experienced a more than 10% increase, while Hasbro rose by 6.5%. Additionally, Jakks saw an increase of over 15%, and Funko skyrocketed by an astonishing 46.4%.
This uptick in share prices brought Hasbro above its trading levels from early April, prior to the announcement of Trump’s initial “reciprocal tariffs” impacting multiple trading partners. Despite this rebound, other toy stocks remain below their closing prices of April 1.
Last month, Hasbro projected it could suffer a loss of up to $300 million if the 145% tariff remained in effect.
Mattel also recently cautioned that it was implementing various measures to mitigate costs associated with the ongoing trade conflict, which includes raising prices in the United States.
The two companies had previously provided forecasts based on an expectation of 25% tariffs on Chinese imports. However, Mattel withdrew its guidance earlier this month, citing economic volatility and uncertainty regarding U.S. tariffs. In contrast, Hasbro maintained its full-year guidance from the previous quarter but cautioned investors about potential uncertainties in the tariff landscape.
Representatives from Hasbro, Mattel, Jakks, and Funko have not yet responded to Finance Newso’s request for comments.
