Brian Goldner suggested that the border tax will not be a problem for the US.
The CEO was a guest on CNBC’s Squawk Box segment to offer his thoughts on the border tax proposed by President Trump.
He noted that a border tax shouldn’t be viewed simply by itself as it is likely to be accompanied by a reduction in corporate tax rates. He also stated that a border tax isn’t anything new or unique to a company and is comparable to currency fluctuations across the world or new tariffs in foreign markets. He emphasised that many of Hasbro’s games are already manufactured inside the US, and the company already has plans to bring back its Play-Doh manufacturing to the US after the segment recorded its best performance in 60 years.
He added: “Over the last couple of years, you’ve seen these huge currency fluctuations, you’ve seen in Brazil there is a 35% tariff on the importation of products – and we have dealt with that to maintain our gross margins”.
The co-host of the segment, Joe Kernen, pointed out that Goldner’s calm approach to the proposed border tax is in contrast to the worries of “cry baby retailers”.
Brian responded that the approach to tackling border tax, currency fluctuations or tariffs in key markets is to get the entire team in sync from supply chain to marketing.