World equity markets rose significantly on Monday after the US and China agreed to pause reciprocal tariffs for 90 days according to mainstream news sources including The Times and CNBC. The announcement includes reducing the 145% President Trump had in place on Chinese imports to 30%(though that is still a significant figure). In the UK the FTSE 100 rose to its highest value since the beginning of April with similar advances in the US indices.
“Mattel shares grew by over 10%, Hasbro was up 6.5%, Jakks Pacific 15% and Funko a huge 46.4%.”
In the toy industry Mattel shares grew by over 10%, Hasbro was up 6.5%, Jakks Pacific 15% and Funko a huge 46.4%. The sector is heavily reliant on supply chains in China, leaving toy makers at the mercy of trade policy
The stocks had been hammered by Wall Street as investors anticipated manufacturing hiccups and price hikes resulting from the tariff scheme. Toy companies are heavily reliant on supply chains in China, leaving toy makers at the mercy of trade policy. Bank of America estimates both Mattel and Hasbro source about 40% of their U.S. product from China.
Last month, Hasbro estimated it would see as much as a $300 million hit to its bottom line if Trump’s 145% China duty held.
