Trump's Toy Tariffs! Are Your Childhood Dreams About to Explode?

A Licence to... Bill?

Right then 00 Section. Seems our old friend President Trump has been stirring the pot again only this time it's not a martini he's shaking but the global toy market. Mattel and Hasbro two titans of the toy world are feeling the pinch from this escalating trade war with China. Their stocks are taking a nosedive faster than I do when escaping Blofeld's lair. "Shocking. Absolutely shocking!" as Q would say if he cared about anything other than ejector seats and exploding pens.

From Russia With... Tariffs?

Mattel's shares hit a new low a dismal $13.95 a pop. That’s down 27% since this ‘reciprocal tariff’ policy came into play. Hasbro isn’t faring much better at $49 down over 20%. It seems everyone is playing hardball these days but instead of a Walther PPK they're wielding tariffs. Remember Mr. Trump 'once is happenstance. Twice is coincidence. Three times is enemy action.' Let's hope this doesn't reach enemy action as my next assignment may involve playing with dolls!

The World Is Not Enough (Toys)

The toy industry's reliance on China is their Achilles heel. About 40% of Mattel and Hasbro's U.S. products come from the Middle Kingdom. It seems these companies find themselves in a precarious situation more exposed than I am when Moneypenny walks in during my debriefings. "Well I trust you kept your clothes on 007?"

Goldfinger's Tariff Touch

Trump initially slapped steep levies on imports from everywhere but later reduced most to a measly 10% except for China who received a rather 'golden' 145% tariff. China in turn retaliated with a 125% levy on American goods. It’s like a game of cat and mouse only instead of a cunning spy and a megalomaniac we have two countries and escalating tariffs. 'Do you expect me to talk?' 'No Mr. Bond I expect you to BUY!'

Diamonds Are Forever... Expensive!

Toy margins are razor thin so these companies can't just absorb the costs. They'll likely pass them on to consumers resulting in higher prices on the shelf. We could be looking at toy costs doubling which is hardly the kind of explosive action I prefer. It looks like parents gearing up for back to school shopping are in for a nasty surprise unless they plan to equip their children with only the bare essentials. Or teach them to fight with exploding pens!

No Time to Buy?

So there you have it. The toy industry is in a state of flux thanks to these trade wars. It remains to be seen if Mattel and Hasbro can find a way to navigate this mess without causing childhood dreams to burst like a shaken bottle of champagne. Now if you'll excuse me I have a briefing with M. I suspect my next mission will involve infiltrating a toy factory. 'The name's Bond James Bond. And I'm here to save Christmas.'