To overcome the U.S. – China trade war, global toymaker, Hasbro Inc. to shift the manufacturing plant from China to India and Vietnam. This move will surely boost India’s growing economy.
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Hasbro CEO Brian Goldner said they are increasingly spreading their footprint and adding new geographies for production globally. “That includes new production in India and Vietnam,” he said. The CEO added that China continues to be a high-quality, low-cost place to manufacture toys. “It will continue to be part of our global network in a major way,” he said.
With the successful production of Avengers: Endgame merchandize, Hasbro saw a leap in its stock price to 6.7%. The company, according to CNBC, sourced 20% of its products sold in the U.S. from American manufacturers during the year. Hasbro now hopes to have only 50% of its products from China by 2020-end.
Deb Thomas, Hasbro CFO said they have done the work and are prepared to address tariffs if they happen but continue to believe they would be very disruptive to their business and consumers in the near term. Thomas said the consumers would ultimately bear the brunt as retailers would raise prices than suffer a draw back.
Hasbro is the latest company in the growing list of companies leaving China amid heightened tensions between Washington and Beijing. Intel Corp. is also reviewing its production plans in China.
Ealier this month, the U.S. had imposed 25% tariffs on $34 billion worth of Chinese goods and China retaliated with levies worth $34 billion on U.S. goods.