The CEO of toymaker Hasbro said during a post-earnings conference call Monday that the company will move more production outside of China as a result of potential tariffs.
According to the company’s website, most of its third-party vendors and factories are located in China, but Hasbro said it started expanding production outside of China and will “continue to diversify our third-party factory base globally.”
Washington imposed 25% tariffs on $34 billion worth of Chinese goods in early July and Beijing retaliated, adding levies on U.S. goods worth $34 billion. Last week, in an interview on CNBC, Trump threatened to impose tariffs on all $500 billion in imports from China.
Hasbro topped analysts’ estimates for profit and revenue in the second quarter. The company has started to move past the bankruptcy of toy retailer Toys ‘R’ Us, noting that it will not recapture all of the lost revenue in 2018, but expects to move beyond it by 2019.
FOX Business' Matthew Kazin contributed to this article.