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Could Disney get tariffed to death? Well, considering almost all of their parks merch is made in China — it’s gonna sting.
Disney’s ambitious cruise line expansion is deemed a “terrible idea” by critics, who argue they should license ships to other companies instead of building more during economic uncertainty.
Disney’s merchandise profit margins are “insanely high”, with some items costing only $2 to produce but selling for $40-$80, allowing them to charge 3-4 times the production cost.
104% tariffs on licensed toys produced in China have more than doubled costs for Disney’s consumer products business, potentially crippling this lucrative revenue stream.
Tariff-induced price hikes on merchandise and meals in Disney theme parks could dampen high-margin upsell opportunities and lead to a downturn in advertiser demand across their media empire.
Bob Iger is reportedly “freaking out” about the rising cost of steel for Disney’s cruise ships due to tariffs, threatening the profitability of these “floating hotels”.
Disney’s reputation could suffer significant damage in key global markets due to tariff-related price increases, potentially leading to a lack of guests and reduced discretionary spending in their parks and resorts.
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