Massive Import Tariffs Threaten the US Hobby Gaming Market

Board game makers are no strangers to creative ideas, a close-knit community, and relatively low profit margins. That’s just the way they like it. A crippling financial hit that could put a company out of business or disrupt the future of an entire industry is something they’d much rather not be dealing with. Such is the case this week for the modern board game industry, which was stunned to learn that new tariffs on Chinese-manufactured goods will jack up their import taxes by 54 percent.

Designer Jamey Stegmaier, known for his popular games Scythe and Wingspan, broke the news with a deeply personal confession this week. In a new blog post, he wrote, “Last night I tried to work on a new game I’m brainstorming, but it’s tough to create something for the future when that future looks so grim. I mostly just found myself staring blankly at the enormity of the newly announced 54 percent tariff.”

For a guy who designs some of the most famous games in the world, Stegmaier’s admission was a shockingly vulnerable one. It’s also one that many others in the game industry have since seconded.

The System We Have, And Why It’s So Important

The US board game industry is deeply integrated with Chinese manufacturers. While other nations have facilities—Germany for example, is the spiritual birthplace of modern tabletop gaming and does house some manufacturing operations for its game makers—China is often the best or only place to get all aspects of a board game factory produced: Printed cards, custom plastic miniatures, wooden tokens and other specialty components, die-cut boards, and custom dice.

In short, making that stuff at home is possible, but unfeasibly so. Stegmaier shared that at one point, he was quoted $10 by an American manufacturer, but just for a standard empty game box. That same $10 could print and package a full game in China.

That price discrepancy is why this new tariff is so potentially industry-disrupting. Most US board game publishers, especially smaller ones, have very tight margins. To have that cost suddenly increased at such short notice, without a lead time to make other preparations, has rocked the industry.

It’s an issue that’s had other high-profile developers sounding the alarm as well. Meredith Placko, CEO of Steve Jackson Games, has been outspoken as well. The company makes the likes of Munchkin and many others, and has been a fixture in the industry for over 30 years.

Placko’s factory is in the same situation as most others, making her message all the more strong.

“I get it: China is sending the US a message. But at what cost?” she wrote in a post earlier this week. “The US board game industry relies on production in China, just as many US companies in other industries do, for one basic reason: It’s the most cost-effective way to do it.”

“Some people ask, ‘Why not manufacture in the US?’” she continued. “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.”

That’s why she described the new tariffs as “not just a policy change,” but “a seismic shift” in the industry.

Rob Daviau, co-founder of Restoration Games, has for months now been voicing his fears, especially on social media. “I can honestly say that, without exaggeration, nearly every business meeting I have with other game industry folks has been ‘an existential crisis about our industry’ these past few months,” Daviau wrote last month.

Daviau was blunter still in a recent interview with BoardGameWire, saying that if tariffs like this were ever imposed, he foresaw “a great collapse in the hobby gaming market in the US.”

Gamers in the Squeeze

The worry for most publishers, of course, isn’t just the up-front cash flow or even future investments, but also the impact on the hobbyists who play games.

Retail prices are almost certain to rise for new games. In some cases, companies will try to absorb the extra cost of production by cutting corners, so the quality of games might decline. In other cases, smaller publishers might decide it’s not worth it to release new products at all.

Local game stores could also take a hit. Some retailers are already struggling due to competition from online vendors, and if gamers start hoarding their collections (you know, those unplayed games on your “shelves of shame”) or buying online at better prices, the remaining brick-and-mortar outlets could suffer.

“Aside from the tremendous loss of money for companies that are already small and have been trying to get their expenses to a break-even point, within a few months, US companies will lose a lot of money and/or go out of business,” Stegmaier said. “And US citizens will suffer from extreme inflation.”

Limited Alternatives and Escaping the Tariff

Some publishers will try to ship games into the US through non-US distributors. European markets are less affected by this change, for example. But that’s not a real solution for US-based companies. As Stegmaier notes, 65 percent of his company’s sales are domestic.

It’s also not a solution for games already in production or even ready to ship. For publishers that have time to restructure their budgets, there’s some hope that existing products might be canceled or reworked to remove cost. But for most games already produced and on the way from China, the tariff has to be paid.

“That is a massive amount of frustration for me,” said Chris Solis, head of California-based Solis Game Studio. “I have 8,000 games leaving a factory in China this week and now need to scramble to cover the import bill.”

A Call to Arms

GAMA, the Game Manufacturers Association that lobbies on behalf of US board game publishers, has been doing its best to push back against the tariffs as well. A letter was signed by GAMA to both the US Trade Representative and the European Commission to express its concerns. So far, however, their actions have not seen any relief or response.

As many games are still wrapped up in legal and manufacturing limbo between the US and China, it’s hard to tell where things stand at the moment. As more news comes out, it’s clear that the board game industry is at one of the most disruptive moments in its recent history. In an industry that’s based on play and creativity, it’s not the future anyone was expecting.