Some multinationals including Intel Corp. are reviewing their production plans, while others are already speeding diversification to spread risk as widely as possible.
Goldner said China continues to be a high-quality, low-cost place to make toys, and “it will continue to be part of our global network in a major way,” according to the transcript of the call. Nonetheless, Hasbro said it’s already seen disruption because of trade worries. Chief Financial Officer Deborah Thomas said some retailers briefly paused direct import orders from manufacturing locations during the second quarter as they watched the trade situation. Last year, 35% of Hasbro’s US and Canada revenue was delivered through such direct imports. It expects the percentage to decline this year, forcing Hasbro to take on more imports itself.