So we do have 30% of our manufacturing today outside of China and we'll head toward 40% over just the next few years.
Brian Goldner, CEO, Hasbro
I thought it important to point out a case of bad reporting by New York Post reporter, Carl Stier. Mr. Stier's byline appeared with this headline in the July 24, 2018 edition of the paper: "Hasbro Moving Product Out of China to Avoid Trade War".
He then led with these opening sentences:
Hasbro…will move the bulk of its China production out of that country to get out from under President Trump’s trade war, it said Monday. The move comes in response to the 25 percent tariff Trump placed on $34 billion of Chinese imports, the company said.
That is simply not true. First of all, there are, as of now, no tariffs on any consumer products, much less toys. There could be if the administration so chooses but as of right now they simply do not exist.
Secondly, the article went on to state, erroneously, that Hasbro makes one-third of its toys in China. This is incorrect. The company makes seventy percent of its toys in China.
Third, and most importantly, I was able to get a partial transcript of the comments by CEO, Brian Goldner that Mr. Stier appears to be referencing. Here is what Brian Goldner actually said in response to this question: Brian, I wonder if you could comment on the potential for a tariff and any update on what Hasbro is doing in anticipation of that.
Brian Goldner: So we do have 30% of our manufacturing today outside of China and we'll head toward 40% over just the next few years. We're manufacturing in a number of territories…
And in terms of the tariffs, we've been working with and talking to the administration and our congressional delegations to ensure we're communicating just how terrible an impact ongoing tariff or trade war would be. Thus far, we've only seen non-material changes to the tariff schemes of other countries that don't really impact our business. Our toy business has not been part of the 303 designation that is currently been put in place, but we continue to monitor the situation and we continue to talk and firmly believe in a free trade environment as the best course for our company and for the industry.
So, bottom line, Hasbro is not moving the bulk of its production out of China. These are turbulent enough times for the toy industry, we simply don't need this kind of reporting.