Tariff Impact on Board Game Industry
The CEO of Steve Jackson Games, which makes board games and card games, says that the 54 percent tariff on goods imported from China that will go into effect on April 5th is a “seismic shift” for the board game industry and that “prices are going up.”
Assessing the Impact
“At Steve Jackson Games, we are actively assessing what this means for our products, our pricing, and our future plans,” CEO Meredith Placko says in a post. “We do know that we can’t absorb this kind of cost increase without raising prices. We’ve done our best over the past few years to shield players and retailers from the full brunt of rising freight costs and other increases, but this new tax changes the equation entirely.”
Example of Tariff Impact
In the post, Placko spells out an example of how the tariff could affect costs. “A product we might have manufactured in China for $3.00 last year could now cost $4.62 before we even ship it across the ocean,” she says. “Add freight, warehousing, fulfillment, and distribution margins, and that once-$25 game quickly becomes a $40 product. That’s not a luxury upcharge; it’s survival math.”
Lack of US Manufacturing Infrastructure
Placko adds that the company doesn’t manufacture in the US because the infrastructure “doesn’t meaningfully exist here yet.” She acknowledges that tariffs can be “an effective tool” when they are “part of a long-term strategy to bolster domestic manufacturing.” But she says that “there is no national plan in place to support manufacturing for the types of products we make.”
Call to Action
If you’re frustrated with the tariffs, Placko suggests writing to your elected officials. “Ask them how these new policies help American creators and small businesses,” she says. “Because right now, it feels like they don’t.”
Industry Reactions
The Game Manufacturers Association (GAMA) has also issued a grim warning. “The latest imposition of a 54% tariff on products from China by the administration is dire news for the tabletop industry and the broader US economy,” GAMA said, according to Polygon. Card-grading company PSA has released a statement about the new tariffs, too, saying that the company has paused direct card grading submissions from outside the US.
Hasbro’s Take
In March, Hasbro CEO Chris Cocks told Yahoo Finance that “when you’re talking about tariffs in the neighborhood of 20 percent plus, that’s a cost that we can’t fully accommodate. It will have to be passed on.”
Conclusion
The 54 percent tariff on goods imported from China is expected to have a significant impact on the board game industry. As the CEO of Steve Jackson Games notes, prices are set to rise, and the industry is struggling to adapt to the new tax. The lack of US manufacturing infrastructure and the absence of a national plan to support domestic manufacturing only add to the challenges faced by the industry.
FAQs
Q: What is the 54 percent tariff on goods imported from China?
A: The tariff is a tax on goods imported from China that will go into effect on April 5th.
Q: How will the tariff affect the board game industry?
A: The tariff is expected to increase prices for board games and other products made in China.
Q: Why doesn’t Steve Jackson Games manufacture in the US?
A: The company doesn’t manufacture in the US because the infrastructure “doesn’t meaningfully exist here yet.”
Q: What can I do to help the industry?
A: You can write to your elected officials and ask them how these new policies help American creators and small businesses.
