How Will The New Tariffs Affect TTRPG Prices?

New US tariffs have hit the world, and the tabletop gaming industry is bracing for impact. Every company (including us) will be doing a thorough analysis of how the recent US tariffs will affect their business, and then plan accordingly.

Of the raft of global tariffs on US imports declared yesterday, two in particular affect the tabletop gaming industry--the tariffs on the EU and on China.

The new tariff on goods manufactured in the EU is 20%, while those which originate in China are 34%. This is in addition to a recent 20% tariff on China, raising that level to 54%.

The tariff applies to the place of origin of a product, not the country where the company is registered. Many game companies in Europe, the UK, and Scandinavia print books in the EU; and more complex products which require boxes or other components, including those from game companies in the US, often come from China. The tariff on UK-produced products is 10%, but most UK-based companies print in the EU and China.

There is something called the 'de minimis threshold', and generally shipments below that value do not incur tariffs. In the US that is currently $800, and it mainly affects individual orders bought from overseas. However, that no longer applies to goods made in China. It also won't help with shipments of inventory (such as a print run) shipped to a US warehouse from the EU. When somebody in the US orders a book from, say, a UK game company, that order will often be fulfilled from inventory stored in a US warehouse rather than shipped directly from the UK. That US inventory will have incurred the tariff when it was shipped as part of a larger shipment.

A shipment of our books from our printer in the EU​

Of course, these aren't the only way that tariffs can affect prices. Even products manufactured in the US might use materials or components from China, Canada, or the EU, and that will affect the production cost of those products. For example, a US printer which uses paper sources in Canada is going to have increased costs. DriveThruRPG's print-on-demand costs have already increased by as much as 50% in the US.

How might game companies go about handling these increased costs?

• Eat the tariff themselves. That might be possible in some instances, but the size of them will likely make that non-feasible. Most game products do not have a 54% profit margin.​
• Manufacture in the US. That solution might be feasible but runs into a couple of barriers. (1) US printing costs tend to be higher; (2) goods would then have to be exported to the EU, Canada, and other countries, which may have reciprocal tariffs in place; (3) US printing capacity isn't up to the task (remember printers don't just print games--we're talking books); (4) US non-book game component manufacture capacity is even more difficult; (5) splitting a print run between a US and EU or Chinese printer greatly reduces the per-unit manufacture cost as the volume at each location will be halved; (6) as the recent DTRPG printing cost increase shows, even US printers use raw materials from elsewhere.​
• Pass the cost along to customers. This, unfortunately, is probably going to be the most feasible result. This means that the price of games will be going up.​

It gets really difficult when the production/shipping process straddles the tariff. We at EN Publishing have four Kickstarters fulfilling (Voidrunner's Codex, Gate Pass Gazette Annual 2024, Monstrous Menagerie II, and Split the Hoard) which have been paid for, including shipping, by the customer already. Two of those (Voidrunner and Split the Hoard) involve boxes and components, which meant they were manufactured in China. The other two are printed in the EU (Lithuania, specifically). All four inventory shipments will arrive in the US after the tariffs come in. We haven't yet worked out exactly what that means, but it won't be pleasant.

I suspect in the future, in these days of sudden tariffs, companies will hold back on charging for shipping right up until the last minute. And that's also bad news for customers, as they won't know the shipping price of a game until it's about to ship. This might also mean a shift towards digital sales which--currently--are not affected.

Most game companies are likely crunching numbers and planning right now. It is not known how long the tariffs will be in effect for, or what retaliatory tariffs countries will put in place against US goods. But this is a global issue which is going to drastically affect the tabletop gaming industry (along with most every other industry, but this is a TTRPG news site!)

Steve Jackson Games posted about the tariffs (the site seems to be experiencing high traffic at the time of writing)--

Some people ask, "Why not manufacture in the U.S.?" I wish we could. But the infrastructure to support full-scale boardgame 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, labor, and timelines simply aren't.

We aren't the only company facing this challenge. The entire board game industry is having very difficult conversations right now. For some, this might mean simplifying products or delaying launches. For others, it might mean walking away from titles that are no longer economically viable. And, for what I fear will be too many, it means closing down entirely.

Note: please keep discussion to the effect of tariffs on the game industry. This forum isn't the place to discuss international politics.

 

[Morrus]

Most EU companies will pass the cost off to the consumer. Companies within controlled economies (like China) will eat the additional costs caused by the tariffs, imo.

It gets really difficult when the production/shipping process straddles the tariff. We have four Kickstarters fulfilling (Voidrunner's Codex, Gate Pass Gazette Annual 2024, Monstrous Menagerie II, and Split the Hoard) which have been paid for, including shipping, by the customer already. Two of those (Voidrunner and Split the Hoard) involve boxes etc., which means they were manufactured in China. All four inventory shipments will arrive in the US after the tariffs come in. We haven't yet worked out exactly what that means, but it won't be pleasant.

I suspect in the future, in these days of sudden tariffs, companies will hold back on charging for shipping right up until the last minute. And that's also bad news for customers, as they won't know the shipping price of a game until it's about to ship.

[edit--adding this to the OP]

 

[dbm]

Is there any benefit in shifting the default distribution hub to somewhere outside the USA? Then product with a final destination other than the US won’t pass through the tariff zone. I recognise this would increase the logistical effort and associated costs but might that at least be economic for those regions?

SJ Games web store still won’t ship to the UK after Brexit, and their Kickstarters often won’t ship physical product outside of continental USA. Might we see a trend where Kickstarters are for either USA only or ‘Rest of World’? That would at least help compartmentalise the impact, though limiting economies of scale that might otherwise be achieved.

 

[Paul Farquhar]

Is there any benefit in shifting the default distribution hub to somewhere outside the USA

That would depend on where your most lucrative market was located. When people build walls (including economic ones) you need to decide which side you want to be on.

And if you are sourcing materials from both sides you are screwed each way.

 

[Morrus]

Is there any benefit in shifting the default distribution hub to somewhere outside the USA? Then product with a final destination other than the US won’t pass through the tariff zone. I recognise this would increase the logistical effort and associated costs but might that at least be economic for those regions?

It's point of origin. You can't ship things through different countries to avoid tariffs.

SJ Games web store still won’t ship to the UK after Brexit, and their Kickstarters often won’t ship physical product outside of continental USA.

Yeah, that's just odd. I'm not sure why they can't do what hundreds of other game companies manage just fine.

Might we see a trend where Kickstarters are for either USA only or ‘Rest of World’? That would at least help compartmentalise the impact, though limiting economies of scale that might otherwise be achieved.

There are already Kickstarters which are USA only. I've not seen a 'Rest of World' one before! But given how focused the TTRPG industry is towards the US, that might not be feasible. Off the top of my head, I don't know.

 

[Paul Farquhar]

Yeah, that's just odd. I'm not sure why they can't do what hundreds of other game companies manage just fine

Probably has more to do with politics than economics. You really can’t separate the two.

 

[TiQuinn]

OK, first off a caveat--these are just off-the-cuff thoughts. Every company (including us) will be doing a thorough analysis of how the recent US tariffs will affect their business, and then plan accordingly. None of the below takes that into account, so please do not treat it as business advice! I might be completely off-base (and if our analysis shows that, I'll be delighted).

Of the raft of global tariffs on US imports declared yesterday, two in particular affect the tabletop gaming industry--the tariffs on the EU and on China.

The new tariff on goods manufactured in the EU is 20%, while those which originate in China are 34%. This is in addition to a recent 20% tariff on China, raising that level to 54%.

The tariff applies to the place of origin of a product, not the country where the company is registered. Many game companies in Europe, the UK, and Scandinavia print books in the EU; and more complex products which require boxes or other components, including those from game companies in the US, often come from China. The tariff on UK-produced products is 10%, but most UK-based companies print in the EU and China.

There is something called the 'de minimis threshold', and generally shipments below that value do not incur tariffs. In the US that is currently $800, and it mainly affects individual orders bought from overseas. However, as of yesterday, that no longer applies to goods made in China. It also won't help with shipments of inventory (such as a print run) shipped to a US warehouse from the EU. When somebody in the US orders a book from, say, a UK game company, that order will often be fulfilled from inventory stored in a US warehouse rather than shipped directly from the UK. That US inventory will have incurred the tariff when it was shipped as part of a larger shipment.

Of course, these aren't the only way that tariffs can affect prices. Even products manufactured in the US might use materials or components from China, Canada, or the EU, and that will affect the production cost of those products. For example, a US printer which uses paper sources in Canada is going to have increased costs.

How might game companies go about handling these increased costs?

• Eat the tariff themselves. That might be possible in come instances, but the size of them will likely make that non-feasible. Most game products do not have a 54% profit margin.
• Manufacture in the US. That solution might be feasible but runs into a couple of barriers. (1) US printing costs tend to be higher; (2) goods would then have to be exported to the EU, Canada, and other countries, which may have reciprocal tariffs in place; (3) US printing capacity isn't up to the task (remember printers don't just print games--we're talking books); (4) US non-book game component manufacture capacity is even more difficult; (5) splitting a print run between a US and EU or Chinese printer greatly reduces the per-unit manufacture cost as the volume at each location will be halved; (6) as the recent DTRPG printing cost increase shows, even US printers use raw materials from elsewhere.
• Pass the cost along to customers. This, unfortunately, is probably going to be the most feasible result. This means that the price of games will be going up.

This might also mean a shift towards digital sales which--currently--are not affected. Print-on-demand costs have already increased by as much as 50% in the US.

Note: please keep discussion to the effect of tariffs on the game industry. This forum isn't the place to discuss international politics.

This is unprecedented but, in your opinion, what would be the impact on kickstarters where a pledge is made before the tariffs but the actual product isn’t delivered til next year (assuming the tariffs are still in effect?)

Even if you have a million dollar kickstarter, I assume the margins can get slim if you keep adding enough rewards. What likely options face publishers in this case?

 

[Morrus]

This is unprecedented but, in your opinion, what would be the impact on kickstarters where a pledge is made before the tariffs but the actual product isn’t delivered til next year (assuming the tariffs are still in effect?)

Even if you have a million dollar kickstarter, I assume the margins can get slim if you keep adding enough rewards. What likely options face publishers in this case?

See my post above where I talk about that exact thing.

 

[TiQuinn]

See my post above where I talk about that exact thing.

Oops missed that second part!

 

[Bedrockgames]

OK, first off a caveat--these are just off-the-cuff thoughts. Every company (including us) will be doing a thorough analysis of how the recent US tariffs will affect their business, and then plan accordingly. None of the below takes that into account, so please do not treat it as business advice! I might be completely off-base (and if our analysis shows that, I'll be delighted).

Of the raft of global tariffs on US imports declared yesterday, two in particular affect the tabletop gaming industry--the tariffs on the EU and on China.

The new tariff on goods manufactured in the EU is 20%, while those which originate in China are 34%. This is in addition to a recent 20% tariff on China, raising that level to 54%.

The tariff applies to the place of origin of a product, not the country where the company is registered. Many game companies in Europe, the UK, and Scandinavia print books in the EU; and more complex products which require boxes or other components, including those from game companies in the US, often come from China. The tariff on UK-produced products is 10%, but most UK-based companies print in the EU and China.

There is something called the 'de minimis threshold', and generally shipments below that value do not incur tariffs. In the US that is currently $800, and it mainly affects individual orders bought from overseas. However, as of yesterday, that no longer applies to goods made in China. It also won't help with shipments of inventory (such as a print run) shipped to a US warehouse from the EU. When somebody in the US orders a book from, say, a UK game company, that order will often be fulfilled from inventory stored in a US warehouse rather than shipped directly from the UK. That US inventory will have incurred the tariff when it was shipped as part of a larger shipment.

Of course, these aren't the only way that tariffs can affect prices. Even products manufactured in the US might use materials or components from China, Canada, or the EU, and that will affect the production cost of those products. For example, a US printer which uses paper sources in Canada is going to have increased costs.

How might game companies go about handling these increased costs?

• Eat the tariff themselves. That might be possible in come instances, but the size of them will likely make that non-feasible. Most game products do not have a 54% profit margin.
• Manufacture in the US. That solution might be feasible but runs into a couple of barriers. (1) US printing costs tend to be higher; (2) goods would then have to be exported to the EU, Canada, and other countries, which may have reciprocal tariffs in place; (3) US printing capacity isn't up to the task (remember printers don't just print games--we're talking books); (4) US non-book game component manufacture capacity is even more difficult; (5) splitting a print run between a US and EU or Chinese printer greatly reduces the per-unit manufacture cost as the volume at each location will be halved; (6) as the recent DTRPG printing cost increase shows, even US printers use raw materials from elsewhere.
• Pass the cost along to customers. This, unfortunately, is probably going to be the most feasible result. This means that the price of games will be going up.

This might also mean a shift towards digital sales which--currently--are not affected. Print-on-demand costs have already increased by as much as 50% in the US.

Note: please keep discussion to the effect of tariffs on the game industry. This forum isn't the place to discuss international politics.

It is also worth pointing out not every company orders their own printing. There are lots of smaller publishers who work through third parties (myself included), and when you have such a printing arrangement this sort of decision becomes more complicated because two parties are effectively involved

I have a book pretty much ready to go but I might delay until this all passes over. However I still need to sort out the details of how this will specifically impact us (depending on my printer's arrangements, it could have different impacts). I released a book right when Covid hit and just as the shutdowns were starting. It isn't like I have a lab to run an experiment and see if the impact would have been different had I released it a year before or two years after, but my guess is it had a very negative impact on sales (I think if we had released it once the shutdowns were settling in, and people were spending lots of time online and playing games, it might have been different, but this was released in a moment like the current one, where there were just lots of unknowns).

 

[Paul Farquhar]

passes over.

I admire your optimism!

But some damage, once done, cannot be undone.