Thursday, May 16, 2019

More on Tariffs

If the proposed tariffs go through, they do include HTS code 950490600 which includes chess, checkers and other boardgames  Here are some more details on it but if you don't feel like slogging through the verbiage, unless there is a negotiated end to the trade war with China, boardgames and supplies would see a  25% tax increase on their prices later this year. It would not go into effect this summer, so games already in production would not be effected, but we could see price increases across the board by Christmas. Gary Ray, owner of Black Diamond Games, looked at his top sellers and where they are manufactured. Due to cost savings, the overwhelming number are produced in China and, unfortunately, due to supply chain constraints, companies cannot shift manufacturers quickly. they are looking at 6 months to a year before a new publisher could be found.

What could happen:
1. to product consumers, manufacturers absorb the tax increase and hold prices steady instead of passing it along to the consumer.
2. manufacturers pass the price increase immediately along to the consumer

Either option is not desirable. Previous tariffs from the Trump administration have targeted raw materials, not products used by the consumer. this latest batch will hit the consumer directly in the pocketbook.

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