Anbernic Pulls the Plug on US Shipments Amid Tariff Turmoil

The escalating trade tensions between the United States and China have claimed another casualty, this time in the realm of retro gaming. Anbernic, a popular manufacturer of handheld consoles renowned for their emulator capabilities, has announced an immediate suspension of all shipments from China to the United States, citing the prohibitive tariffs imposed by the Trump administration.

As the company revealed, goods shipped from China to the US now face a staggering 145% tax. This measure is reportedly intended to incentivize companies to relocate their production to the United States or prioritize domestically sourced materials. While the landscape of these tariffs remains fluid with potential exemptions for certain technologies, video game consoles have not been spared from this hefty levy.

Anbernic has explicitly stated that this new tax regime is the direct cause of its decision to halt shipments from China to the United States, effective immediately. Customers with existing orders are encouraged to contact the company directly for support. However, no new orders will be accepted for products originating from their Chinese facilities. For the time being, US customers will only have access to products already stocked in Anbernic’s US-based warehouse.

The company has committed to updating its shipping policy should any concrete changes or revisions occur regarding the current US tariffs. Nevertheless, to mitigate the impact of these substantial taxes, Anbernic finds itself compelled to significantly curtail its shipping operations. For a company like Anbernic, whose business model likely operates on tight margins, such a drastic increase in costs can render sales in the US market unprofitable and, consequently, unsustainable.

Anbernic’s predicament foreshadows a potential trend, with the expectation that numerous other companies may be forced to adopt similar measures to safeguard their profitability and maintain customer service in the face of these tariffs.

The duration of this trade standoff between the US and China remains uncertain, particularly given the underlying rationale behind the tariffs. While the stated aim is to revitalize manufacturing within the United States, many analysts have pointed out the absence of a clear and comprehensive strategy for workforce training, establishing new manufacturing facilities, or tangibly enhancing domestic production capabilities.

Meredith Placko, CEO of the esteemed board game publisher Steve Jackson Games, recently articulated these concerns in a blog post. She highlighted the specialized skills and equipment required for the production of many goods, suggesting that on-shoring such manufacturing processes is likely to face significant hurdles.

“I wish we could [manufacture in the US],” Placko stated. “But the infrastructure to support full-scale board game production – specialty dice-making, die-cutting, custom plastic and wood components – doesn’t meaningfully exist here yet. I’ve gotten quotes. I’ve talked to factories. Even when the willingness is there, the equipment, labour, and timelines simply aren’t.”

Companies like Anbernic, dealing with specialized electronics, face a similar challenge. The necessary manufacturing capacity and technical expertise are not readily available within the US, making on-shoring an impractical solution, even if it were desired.

In the coming months, the industry anticipates a growing number of companies will follow Anbernic’s lead in suspending sales to the United States as the tariff situation continues to evolve. In a business environment often characterized by slim profit margins, the increased costs associated with shipping to the US may simply render it economically unviable for many major importers. For now, stakeholders are closely watching to see which other companies will begin to grapple with the significant impact of these US tariffs on their operations.