quick search:
“In the US toy, doll, and game manufacturing industry,
IBISWorld reports a profit margin of 14.1% for Cartamundi in 2025. This figure is specific to the US market, and Cartamundi is a global manufacturer, including brands like USPCC. In 2019, Cartamundi generated revenue of approximately $440 million.“
They’re a relatively small company, operate in a commodity market with most of their product volume likely being from supermarket shelves. If we simplify and assume it’s all US based, a 10% increase in cost on a 14% margin business is massive. Their profit would drop to ~5%.
Most companies like this have a board of directors, their role is usually to ensure the company operates for the benefit of shareholders. So to protect that profit margin, you have to pass it through to your customers. Most businesses are not high 30-40% margin that could absorb. Most will and have to pass it through to survive to be competitive and get investment etc.
If the tariffs stay, then costs only ever go up, not down. Cartamundi decides to build a new Copag card factory in the US. Labor rates are higher than Brazil + they’d need to amortize the investment cost into pricing, and they’d likely still need to import raw materials that’d be subject to a 10% tariff. So in the 2-3 years it’d take to bring it state side, price then goes 2 or 3x.