After President Trump announced sweeping tariffs on imported goods to the United States, Disney CEO Bob Iger commented about the impact of the tariffs on the country and Disney's businesses.
Even before we read the comments from Iger we were already beginning to consider how expected higher prices on goods would impact the Disney theme parks and the planned theme park expansions.
READ MORE – What Do Disney's $60 Billion Plans to “Turbocharge” Investment in Their Theme Parks Really Mean?
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Disney CEO Bob Iger's Comments on Tariffs
During a surprise appearance at a daily ABC News editorial meeting, Iger reportedly sounded the alarm on the President Trump liberation day tariffs. He reportedly “expressed concern about the impact an impending trade war may have on not just his company, but the American economy at large”. We were surprised to see these comments reported publicly and that Iger specifically mentioned part of the Disney theme park business.
This meeting was reported in Oliver Darcy's Status media newsletter and shared by The Wrap. He spoke to the editorial team about impacts of the tariffs on the country at large. He emphasized that relocating overseas manufacturing to the U.S. with any speed is impossible and that most people don't really understand how tariffs work. Staffers who were at the meeting suggested to Darcy that his comments were meant to push the editorial teams to provide helpful information to readers and viewers.
Following this discussion of the general coverage of the tariffs, Iger also then talked about the impacts of the tariffs on other lines of the Disney business. Darcy wrote that Iger's views were “unfiltered”.
Disney is currently in the middle of a decade of expansion to build new attractions at the theme parks and expand the Disney Cruise Line fleet of ships. They have announced that they will spend roughly $60 billion over the next decade to “turbocharge” their Disney Experiences business which includes both the cruise line and theme parks. See more about the new rides coming to Disneyland and the new rides coming to Disney World. When Disney first announced the investment, they described the investment saying they would “nearly double capital expenditures over the course of approximately 10 years to roughly $60 billion, including by investing in expanding and enhancing domestic and international parks and cruise line capacity”.
READ MORE – This is Rumored to be Disney CEO Bob Iger’s Favorite Disney World Hotel
Iger expressed concerns specifically for Disney Cruise Line and two new ships that rely on steel for their construction. These are likely two of the four additional cruise ships planned after the two new cruise ships come online at the end of this year – the Disney Destiny and the Disney Adventure.
Though the report didn't state that Iger specifically mentioned the other theme park expansions, he did touch on “how the company may have to scale back spending if costs rise too high”. All of the planned projects would require lots of additional building materials and skilled labor to construct.
Iger's comments came after President Trump enacted at least a 10% tariff on all countries and higher customized tariffs on some specific countries.
In addition to these potential changes to future theme park expansions, tariffs could also lead to higher prices for food and merchandise across Disneyland and Walt Disney World in addition to grocery stores and restaurants across the country. A tariff is a charge paid by companies that bring goods into the country. Often, these additional costs are passed on to consumers in the form of increased prices of products. This could impact all different aspects of the Disney theme park experience, that we will be watching closely.
This situation is still in flux. We will continue to monitor how these tariffs could impact the Disney theme parks.
Top photo via Disney.
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Most of your products you sell are from China. I guess you are worried how you are going to sell your over priced merchandise now.
Well said! Bob Iger is more interested in maximizing Disney profits than in the fact that countries, especially China, have been treating the US very poorly with their undervalued currency and subsidies of Chinese companies undercutting our US products.
I wish that Mickey Visits would, in its reporting, not to keep referring to everything as “rides.” It is a Disney fact that they are all referred to as “attractions.” except for “Mr. Toad’s Wild Ride” (the only “ride” in the park. Thank you.
Hi Kerry, I don’t disagree with you on the official Disney wording and prefer to talk about attractions but people are definitely more drawn in by “rides” and it is the common lingo. Thank you for the comment and we will be better in our distinctions and mentioning of this in the future.