WORST CASE GETS WORSE: China Tariffs Skyrocket to 104%, Hitting Games and Merch Hard

Just when businesses thought the trade situation couldn’t get more challenging, it did. In a dramatic escalation, an executive order issued Tuesday has raised U.S. tariffs on many goods imported from China to a staggering 104%, effective starting today, Wednesday, April 9th. This represents a massive jump from the already high 54% rate established just last week.

This latest move throws game publishers and merchandise companies, heavily reliant on Chinese manufacturing, into even deeper turmoil, threatening significant price increases for consumers.

A Rapidly Escalating Trade Dispute

The situation has evolved incredibly quickly. Here’s the breakdown:

1. Last Week: The U.S. imposed a 34% tariff increase.
2. China Retaliates: China responded with its own 34% tariff increase on U.S. goods.
3. U.S. Responds Again: Tuesday’s executive order added another 50% tariff on top of the existing 54% (which included last week’s hike), bringing the total U.S. import tax on affected Chinese goods to an unprecedented 104%.

This tit-for-tat escalation creates a volatile environment, making business planning a nightmare.

Immediate Pain Points for Businesses

The impact of a 104% tariff is profound:

• Doubled Costs: For many companies manufacturing games (board games, miniatures, etc.) and merchandise (toys, collectibles, apparel) in China, their cost of goods has effectively more than doubled almost overnight.
• Kickstarter Catastrophe: Companies that funded projects via Kickstarter based on pre-tariff cost calculations are in an extremely difficult position. They’ve collected funds based on one budget, and now face drastically higher expenses with little ability to ask backers for more money without significant backlash.
• Price Hikes & Re-Solicitation: Expect price increases on incoming products. Items already solicited to distributors and retailers at older prices may need to be pulled and re-solicited at significantly higher costs, causing delays and frustration throughout the supply chain.

A Small Glimmer of Hope: Books Seem Exempt

Based on initial reports, it appears that printed materials like comics, graphic novels, and RPG books are currently exempt from these latest tariff hikes. This is crucial for publishers in those sectors, though they will be watching nervously to see if this exemption holds.

Uncertainty Reigns

With tariffs being hiked twice in just seven days and the strong likelihood of further retaliation from China, the only certainty is uncertainty. Businesses impacted by these tariffs face incredibly difficult decisions regarding manufacturing locations, pricing strategies, and future product planning. Consumers, unfortunately, should brace for higher prices on many imported games and merchandise items in the coming months.

The situation is developing rapidly, and we’ll continue to monitor its impact on the industries we love.