The board game industry is bracing for a significant impact as the 54% tariff on goods imported from China takes effect on April 5th. According to Steve Jackson Games CEO Meredith Placko, this move is a "seismic shift" that will inevitably lead to higher prices for consumers. The company, which manufactures board games and card games, is already assessing the implications of this new tariff on its products, pricing, and future plans.
Placko explained that the company cannot absorb the increased cost without raising prices. She provided a stark example of how the tariff could affect costs, stating that a product that previously cost $3.00 to manufacture in China could now cost $4.62, not including additional expenses such as freight, warehousing, and distribution. This could result in a $25 game becoming a $40 product, a price hike that Placko describes as "survival math."
One of the main challenges facing the industry is the lack of manufacturing infrastructure in the US. Placko noted that Steve Jackson Games does not manufacture in the US because the necessary infrastructure "doesn't meaningfully exist here yet." While tariffs can be an effective tool in bolstering domestic manufacturing, Placko argues that there is no national plan in place to support manufacturing for the types of products her company makes.
The Game Manufacturers Association (GAMA) has also expressed concerns about the impact of the tariff, calling it "dire news for the tabletop industry and the broader US economy." Card-grading company PSA has paused direct card grading submissions from outside the US in response to the new tariffs. Hasbro CEO Chris Cocks has also stated that the company will need to pass on the increased costs to consumers, as tariffs in the range of 20% or higher are unsustainable.
The implications of this tariff extend beyond the board game industry, with many consumer electronics and gadgets also set to increase in price. The move is part of a broader trade policy shift under the Trump administration, which has imposed tariffs on a wide range of goods imported from China. As the industry adjusts to this new reality, consumers can expect to see higher prices on store shelves.
In response to the tariff, Placko is urging customers to write to their elected officials and ask how these new policies will help American creators and small businesses. As the industry navigates this uncertain landscape, one thing is clear: the 54% tariff on Chinese goods will have a profound impact on the board game industry and beyond.