Hasbro Inc. toys from based on “Marvel’s The Avengers” movie sit on the shelf at a Target Corp. store in Union, New Jersey, U.S., on Wednesday, Aug. 22, 2012.
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Shares of major toy makers Mattel and Hasbro soared on Tuesday after the United States Trade Representative announced it was delaying proposed tariffs that would have applied to toys.
Mattel rose 9%, while Hasbro climbed 5.7%.
President Donald Trump announced earlier this month that a 10% tariff would go into effect on Sept. 1 on a list of items, including toys. The USTR said in a statement Tuesday that the tariffs on some items, including “certain toys,” will be delayed until Dec. 15.
The timing of the tariffs were a particular source of concern for the toy companies. September is a key shipping month for those companies as they prepare for the holiday shopping season, when the majority of the industry’s business occurs.
The USTR said the delay was due to “health, safety, national security and other factors.”
Hasbro told hstnews earlier this month that it would have “no choice but to pass along the increased costs to our U.S. customers ” if the tariffs were put into place.
Before the delay, the new tariffs would have added an additional $300 billion worth of goods to the list items facing tariffs when imported from China. The delay also applies to imports of cell phones, laptop computers and video game consoles.
Mattel, Hasbro, the National Retail Federation and The Toy Association were not immediately available for comment.
“The Toy Association has been clear that tariffs hurt the American toy industry and the American families we exist to serve,” Steve Pasierb, president and CEO of The Toy Association, said on Aug. 1.
This is breaking news. Please check back for updates.
—hstnews’s Sarah Whitten contributed to this report.