TTGDA Position on US Tariffs

Yesterday the Trump administration announced extensive and enormous tariffs on virtually all products entering the United States, including games. If these tariffs stay in effect they will cause great harm to board game companies and suppress sales of most titles due to price increases. While the biggest headaches will lie with publishers, designers will definitely be impacted.

We urge US members, and all interested parties, to reach out to their representatives to urge for the repeal of the tariffs.

GAMA (The Game Manufacturers Association) put out this eloquent statement that they have given us permission to share here.

After that, we have included some further information about tariffs.

GAMA Statement on Tariffs

URGENT: New 54% Tariff on Chinese Goods Threatens US Economy and Tabletop Industry

The latest 54% tariff on Chinese products is bad news for everyone. Higher prices on clothes, food, appliances, cars, and games mean less money for fun and essentials. This misguided policy could lead to layoffs, business closures, and even a recession.

Take Action Now! Contact your representatives and senators to oppose this damaging policy. Find their info at house.gov and senate.gov. Let's protect our industry and economy together!

Please contact your elected federal Representatives and Senators today to share our opposition to these new Trump Taxes!

Talking Points: Opposition to New 54% Tariff on Chinese Goods

Impact on Prices:

The 54% tariff on Chinese goods will significantly increase the prices of consumer products, including games, clothes, food, appliances, and cars.

Higher prices will reduce discretionary income, making it harder for consumers to afford items like games.

Economic Consequences:

These tariffs act as taxes on consumers, not on the countries where the products are produced.

Increased costs will force publishers to pass these expenses on to customers or risk going out of business.

The policy could lead to widespread layoffs and business closures across the country, including in the tabletop industry.

Production Capacity:

The US lacks the production capacity to quickly ramp up and create replacement products at affordable prices.

The administration's belief that domestic production will fill the gap is unrealistic and will lead to supply shortages and further price hikes.

Broader Economic Impact:

The tariffs will have major repercussions throughout the US economy, potentially leading to a recession.

Higher prices across the board will affect all Americans, not just those in the tabletop industry.

Call to Action:

Urge Congress to show common sense and work together to vacate this damaging policy.

Emphasize the need to protect the US economy and avoid a misguided tariff war that is neither necessary nor needed.

Contact Information:

Find your representative and senators' contact information at house.gov and senate.gov.

Tariff Information

This section is being written by your intrepid president, Geoff Engelstein. I've been in the Import / Export business (my day job) for 35 years now. I see a lot of misinformation being spread about tariffs in general, so I wanted to clear some of it up.

TTGDA is working on a white paper about tariffs, in conjunction with GAMA. This is a quickly-written preview.

Tariffs are paid for by the importer. They are not paid for by the country of origin. Most likely this is the game publisher.

The tariff is based on the cost the importer pays for the product, not the MSRP. It does not include the freight to get to the port of entry.

Some factories, to offset the impact of the tariff will offer to 'sell' the product at a reduced cost and charge a separate 'consulting fee' to make up the difference. The importer then shows the lower cost to customs, and pays a tariff on that. This is illegal. You are supposed to pay import duties and tariffs based on the total value of the imported goods. This includes not just the amount you pay for the product, but also engineering, tooling, setup charges, etc. All costs that go into making the product are subject to tariff.

In reality tooling (for minis, etc), is rarely submitted for tariff, and it generally is let pass. However, it is strictly speaking illegal. If you try to artificially reduce the invoice cost of your products through consulting fees or other means you are breaking the law and may be subject to fines, confiscation of goods, and possible loss of the right to import products into the USA.

De Minimis shipping is still in effect (for now). If the value of a shipment into the USA is below $800 it is not subject to tariff. Some companies break up shipments into many tiny ones to take advantage of this and avoid tariffs. That is illegal.

The 'country of origin' for tariff purposes is a (reasonably) well-defined concept based on the content and value that is added in a particular country. So you can't produce in China, ship to Canada, put it in another box, and send it to the US as 'made in Canada'. If sufficient value is added in Canada, then you can state that. But the rules for origin vary by country and product, so be careful.

If you transship through the US to another country, you can recover tariffs paid. This is called Duty Drawback. For example, if you bring product into the US and pay tariffs, but then ship it to Canada, where there are no tariffs, you can get the tariff back. However you can't touch the product in the US (add promos, whatever). It has to go 'as is'. Also - beware - the process to get your refund can take literal years and require a lot of paperwork. It can be streamlined if you keep your product in bonded warehouses. Then you may avoid paying duty at all if it leaves the bonded warehouse for another country.

As mentioned we are working on a white paper with these and other details. If you have questions now shoot them over to info@ttgda.org.