Business

Hasbro Inc. toys from based on “Marvel’s The Avengers” movie sit on the shelf at a Target Corp. store in Union, New Jersey, U.S., on Wednesday, Aug. 22, 2012.

Bloomberg | Bloomberg | Getty Images

Shares of major toy makers Mattel and Hasbro soared on Tuesday after the United States Trade Representative announced it was delaying proposed tariffs that would have applied to toys.

Mattel rose 9%, while Hasbro climbed 5.7%.

President Donald Trump announced earlier this month that a 10% tariff would go into effect on Sept. 1 on a list of items, including toys. The USTR said in a statement Tuesday that the tariffs on some items, including “certain toys,” will be delayed until Dec. 15.

The timing of the tariffs were a particular source of concern for the toy companies. September is a key shipping month for those companies as they prepare for the holiday shopping season, when the majority of the industry’s business occurs. 

Hasbro told CNBC earlier this month that it would have “no choice but to pass along the increased costs to our U.S. customers ” if the tariffs were put into place. 

Mattel, Hasbro and The Toy Association were not immediately available for comment. 

This is breaking news. Please check back for updates.

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