The USTR says that the tariffs on some items, including “certain toys,” will be delayed until Dec. 15. 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. 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 shares rose 6%, while Hasbro climbed more than 5%. Hasbro, which has a market value of $15 billion, has gained 48% so far this year, while Mattel, which has a market value of $4 billion, has gained 20% during the same period.
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 or removed.
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.
The USTR said the decision was due to “health, safety, national security and other factors.”
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.
Before the delay, the new tariffs were scheduled to add an additional $300 billion worth of goods to the list of items facing tariffs when imported from China. The delay also applies to imports of cell phones, laptop computers, video game consoles, and some apparel items.
“Although we are waiting for further details, we are pleased the administration will delay tariffs on certain consumer products … What we really need is an effective strategy to address China's unfair trade practices by working with our allies instead of using unilateral tariffs that cost American jobs and hurt consumers,” David French, the National Retail Federations' SVP of government relations, said in a statement.
Mattel, Hasbro, and The Toy Association were not immediately available for comment.
“The Toy Association has been clear that tariffs hurt the American toy industry and the American families we exist to serve,” Steve Pasierb, president and CEO of The Toy Association, said on Aug. 1.
—CNBC's Sarah Whitten contributed to this report.
VIDEO 3:05 03:05 USTR: Tariffs on certain products will be delayed until December 15 Squawk on the Street Clarification: This post was updated to clarify that some tariffs are being removed and others are being delayed.