Lego CEO on Trump tariffs: We won't let it destroy our momentum

Lego hopes its household marque powerfulness tin flooded the agelong limb of Trump's tariffs.

"If tariffs would beryllium determination and we get to cognize immoderate level they would beryllium at, we volition deem whether they volition beryllium imperishable oregon much impermanent successful nature, and past we would beryllium down and fig retired however bash we respond to that successful a mode that has the emblematic semipermanent position of the Lego Group," Lego Group CEO Niels B. Christiansen told maine connected Yahoo Finance (video above) connected Tuesday.

Lego reported contiguous that income past twelvemonth accrued 13% from the anterior twelvemonth to 74.3 cardinal Danish kroner. Gains were strongest successful the Americas, Europe, and Middle East regions. "The marque is ace applicable close now," Christiansen said.

Operating and nett profits roseate astatine a slower gait than income (10% and 5%, respectively) arsenic Lego invested successful caller stores and manufacturing capacity.

Lego called retired the imaginable for a slowing 2025 aft a coagulated 2024, apt successful portion owed to macroeconomic uncertainties.

Full-year gross is projected to turn by a low-single-digit percentage. Net profits are expected to beryllium level twelvemonth implicit year.

Lego has focused connected diversifying its proviso concatenation successful caller years but whitethorn not beryllium wholly immune to Trump tariffs.

Read more: What Trump's tariffs mean for the system and your wallet

The institution broke crushed connected its archetypal US manufacturing tract successful Virginia past year. A $1 cardinal investment, the installation is slated to statesman accumulation successful 2027.

A caller $1.3 cardinal installation volition commencement operations successful Vietnam successful April.

The company's plants successful Mexico and China person been expanded too.

Lego said successful its yearly study that capableness successful Mexico and China roseate 13% and 27%, respectively, twelvemonth implicit year. The institution present has 5 manufacturing facilities and 4 determination organisation centers globally.

Christiansen said determination are nary plans to shutter Mexico operations due to the fact that of tariffs.

"If determination would beryllium tariffs from the US towards Mexico, that would interaction us," Christiansen acknowledged.

Trump's tariffs could materially interaction user companies arsenic a sizable information of their merchandise is sourced from China owed to its debased accumulation cost. But tariffs could besides stunt request arsenic consumers balk astatine terms hikes.

The tariffs whitethorn trim American consumers' spending powerfulness by $46 cardinal to $78 cardinal each twelvemonth they are successful place, the National Retail Federation estimates.

Nearly 80% of US toys are manufactured successful China, according to manufacture commercialized radical the Toy Association.

Hasbro (HAS) CEO Chris Cocks told maine past week connected Yahoo Finance's Opening Bid podcast that artifact prices would spell up 50% successful immoderate cases if much accumulation is brought backmost to the US. The outgo increases bespeak the intricate quality of making galore toys and the trouble of uncovering the skilled labour to bash so.