Kickstarters and miniature companies beware! Trade restrictions and cost increases could hit as early as June 24th on exports!
Price hikes and unexpected delays, beyond what manufacturers are experiencing currently, may be on the way. Experts are weighing on what may happen next for the tabletop hobby space, as hearings rage in Washinton D.C. this week on the administration’s latest battle with China.
According to pretty much everyone from toilet makers to bra manufacturers, it’s about to get worse for everyone including the gaming industry.
If you’re unfamiliar with tariffs, as many Americans tend to be because we don’t typically pay import fees, the Toy Industry Association (TIA) broke it down a bit:
How Do Tariffs Cause Harm?
- Tariffs are taxes that are paid for by American families, businesses, workers, and communities, NOT by other countries. They are paid here, at home.
- Tariffs that have been imposed so far have caused U.S. businesses to lay off workers, raised prices for consumers, hurt American farm exports, and threatened an otherwise productive economy.
- Tariffs on toys would reach directly into the pockets of American families in the form of higher prices and reduced choice and availability.
Tariffs & The Tabletop Industry LATEST
Coming from Mike Futter on Yahoo’s Finance Page:
A new document published by the Office of the United States Trade Representative lists thousands of goods categories that could be receiving new or revised tariffs in the amount of 25%.
On the list, buried between billiards and Christmas ornaments are a number of categories related to gaming, including video game consoles and machines, coin-operated arcade machines, and parts related to the operation of coin-operated arcade games.
The way things are looking, however, the tabletop industry is becoming more and more popular. Which is a good thing, but in the face of a 25% increase tariff, could be bad news.
Board Game Geek’s graph of releases, with growth attributed to Kickstarter.
The tabletop industry is experiencing a period of growth, driven in part by a smart marriage with the rise of crowdfunding. Tabletop games are easier than video games to promote via platforms like Kickstarter, because physical prototyping enables reviews and feedback early in the process.
Increased interest and this new sales vehicle has helped the industry grow to approximately $11 billion worldwide, with another 9% growth anticipated by 2023, according to Research and Markets. The proposed 25% tariffs could slam the brakes on that growth according to some players in the industry.
Looks like the tabletop gaming market, in general, could begin to fluctuate.
“Tariffs will drive prices up, quality down, or more likely both,” said Matt Aiken, co-owner and CFO of Keymaster Games. “It might come in the form of increased shipping costs—something Europeans and other countries already deal with—or transparent tariff fees. The cost for shipping to places like Switzerland is already 2x those prices and get passed on to the consumers.
But it doesn’t stop there. GAMA’s executive director, John Stacy also voiced his personal opinion calling the Tariffs deeply troubling.
Stacy says his organization’s membership is deeply concerned about the impact a 25% tariff might have. He points to the increased reliance on Chinese manufacturing that has eroded domestic skill in this area.
Local game store owners are also voicing their concerns as well. David Bower, owner of Time Warp Comics & Games in Cedar Grove, New Jersey, recently said: “I am in favor of updating trade policy with China, but I believe the use of tariffs is a bullying strategy and not productive in the long term.”
“There have already been product delays announced by Games Workshop, a major company. Higher prices will have a very negative impact as I may not be able to pass on the cost to the customers or maintain a healthy profit margin. Product delays will also slow sales and further harm the business.”
While we’re still waiting to feel the full brunt of this Tariff in the hobby, we should keep our eyes on the current hearings in Washington that started on June 17th. What happens next for tariffs could take effect as early as June 24, which could put a lot of strain on businesses in their current fiscal year.
Want to help keep prices from skyrocketing? There is something you can do, right now, that will have an impact on the potential upcoming price hikes for the hobby.
If you are here in the states, follow the link below to fill out a letter to send to your Representatives in the House and the Senate. All you have to do is put in your Zip Code, Name and short message. It literally could be the most important thing you do this year for the hobby, and it took me less than a minute of time.
It’s super easy to do. Once you’re done make sure you share the article with every store owner, co-worker, hobbyist, and friend you know; it takes a minute to fill out and they DO make a difference! Let’s keep the hobby world accessible to everyone.
KEEP HOBBY PRICES DOWN- SEND YOUR LETTER
At the end of the day, it’s unclear who may shoulder any of the price hikes that are imposed by the proposed legislation. But at the end of the day whether it is the consumer or the manufacturer, ultimately someone will be paying.
About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
Socials: Rob Baer on Facebook and @catdaddymbg on X
About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures. Rob has won many Warhammer 40k Tournaments over the years, including the Adepticon Team Tournament and American Team Tournaments, and is on a first-name basis with almost every major company in the space.
He’s all gaming all the time. With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. He advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1908s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
