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First Brexit – now tariffs

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  • #1939863
    sundancer
    43729xp
    Cult of Games Member

    Seems like the small miniature makers can’t catch a breath. After Brexit caused some chaos with most of them (some saying that up to 60% of orders just vanished) the now coming tariffs in the US make them go down a very different route. Here are some quotes from the Facebook pages of the companies.

    Oakbound Studio

    You’ve probably seen by now the news about UK/US shipping that’s coming up. Thanks to the big orange baby. Like the GSPR debacle I am sure we’ll work through this, but whilst we do we will be pausing all orders to the US from the 27th August. Until then, business as usual!

    Ramshackle Games

    New tariff rules are coming into effect for all packages going into the USA. 10% duties must be paid before shipping. Unfortunately, there is currently no way to pay these fees using the UK Royal Mail. Therefore I have suspended all orders to the USA until this issue gets resolved. Its a pain all around and I can only apologise. All orders currently processing will be sent before the deadline on the 29th.

    But different from Brexit the tariffs also affect other parts of the world. So companies like Traders Galaxy (Bot War) are making changes.

    Traders Galaxy

    Over on another group I am seeing several sad frustrations (and I dont mean that mockingly) over the US tariffs set to take effect at the end of this month.
    If I understand it correctly so far it will be collected from me at the point of shipping based on the value of the order. I believe its 10% so if an order is $200usd then $20 will be the tariff when I ship.
    Unfortunately, and I really mean unfortunately, it will mean that I have to implement a 10% price increase on goods purchased by US customers in order to afford to cover the greatly increased price when shipping. Or completely remove the free shipping option for US customers. Both options I expect will damage US sales for Traders Galaxy and the expansion of BotWar and Traders Galaxy games in the USA for which I have worked so incredibly hard to try and obtain.
    There is just no other way I see that I can wear the tariff cost on top of the cost of free shipping for orders over $160usd (which often equates to 20-25% of the order value). So with the tariff and free shipping its a whopping 30-35% of the order value.
    This is doubly true for US stockists who receive Traders Galaxy goods at a wholesale price.
    I am also unsure if there will be any additional delivery time to the USA. I will keep you all posted.
    When actual implementation of things like this happen, they are often much less of an impact than first thought. So I wont know exactly how it will really work until the “rubber hits the road” as they say.
    Of course the US is permitted to implement whichever policies they wish, and I neither agree or disagree with them. This post is not a complaint or a commentary.
    As a small business in rural Australia, all I can do is continue to work within the rules provided as best I can and keep you all informed whats happening. As always I appreciate the support from all my customers around the world and remain committed to delivering you the very best product I can at the best price I can.

    None of this is good. People in the US either can’t get their stuff at all or have to pay a big fee to get stuff. Who is hurt the most? Small companies and people with a limited hobby budged.

    Makes me feel like the golden days of our hobby are way behind us now. Let’s hope for the best!

    #1939865
    limburger
    22088xp
    Cult of Games Member

    the worst part isn’t the tariffs themselves, but the endless postponing and changing.

    Companies can adjust/live with a simple x% increase eventually.

    They can’t adapt to a system that has x% one month and then another randomised number the next with no clue as to what makes the orange cry baby mad this time.

    The worst part is that it not only affects products coming into the USA, but also those made in the USA as a lot of resources need to be imported before they can be turned into product.

    #1939872
    sundancer
    43729xp
    Cult of Games Member

    the worst part isn’t the tariffs themselves, but the endless postponing and changing.

    That’s the icing on the cake and probably the main reason for companies stopping trade.

    #1939894
    pagan8th
    13373xp

    When shipping prices shot up during and after covid I simply stopped backing kickstarters outside the UK.

    #1939896
    elessar2590
    18221xp
    Cult of Games Member

    Not really sure why it would cost more overall. I’m an Australia and when I buy from the UK they take off the 20% VAT. Assuming Americans also lose the VAT (which they do) even a 10% Tariff means they’re still paying less than the locals are.

    So all the companies saying “Sorry guys you need to pay more” are actually just saying “Sorry guys your 20% discount just became only 10%”.

    #1939897
    zoidpinhead
    12713xp
    Cult of Games Member

    I’ve seen comments from other UK suppliers saying they are just charging US customers an extra 10% on top of the order value for the import duty.  The end of de minimis going into the US is a major issue. Most individual hobby orders are below the UK/EU de minimis order value of £135/e150.  The US had a larger de minimis of $800 which will now become $0.  This means all overseas orders into the US will be charged a duty, hence the blanket 10% from those who want to try and continue US orders.  (As an aside, how anyone thought US importers would just pay this duty and not pass it on to US customers is beyond my comprehension.)

    An issue to consider is how the duty process will work.  Before de minimis I used to get charged duty on some of my orders if the UK Post Office who were responsible for collecting it could be bothered.  As well as charging the duty they would add a “processing fee” of £8 per item.  Plenty of times I paid duty of less than £1 and then the extra £8 on top.  So the duty was a 10% extra but the processing fee added another 20-30%.

    The solution is likely to be companies using intermediaries, someone else in the industry who already has a distribution network.  They will then stop supplying that country direct.  It works okay for the Europen and UK companies going to intermediaries in the US.  Not so good for US manufacturers coming this way as Reaper are finding out because they have to set up 2 distribution centres.

    #1939938
    limburger
    22088xp
    Cult of Games Member

    using other distributors is kind of how they finally ‘solved’ the Brexit issues …

    Heck, it’s how car companies got around similar concepts ages ago. Ship the parts to Europe/USA and do final assembly (or whatever they can get away with) there. You think Coca Cola actually ships bottled cola across the world ? (they don’t)

    However it does require these (small/one man) operations work together as they don’t have the scale to do this on their own.

    @elessar2590 a ‘loss’ of a discount is still an increase in price for the consumer. It’s very rare for a company to simply eat the costs. A few kickstarters might do this as a ‘reward’ for their backers if they’ve got the funds, but most companies will simply pass the cost to the customer.

     

    #1939945

    I offloaded a bunch of guitar gear ahead of this nonsense, and now won’t sell to the US. Not worth the headache, plus TACO.

    Canada lives above an active crack den that is on fire.

    #1939957
    phaidknott
    7250xp
    Cult of Games Member

    Buying from the US to the UK is even worse. After the shipping (which is ridiculous no matter which country you are in), you THEN get hit with a 20% “import duty” (or the government charges VAT on good coming into the UK). BUT if you haven’t paid the import duty when paying for your order (which is then paid by the international vendor, more on that later), you then get hit with another £18-£25 (depending the carrier) “handling fee” (to collect the VAT from you). It gets even more mind boggling once you find out that all vendors outside the UK MUST set up an account with HMRC (so even sellers in the US), and then PAY HMRC the VAT/import duty on each order if they are trading in the UK on a regular basis (I really don’t get this part), making a financial and administrative hurdle for the transaction to go through (even some of the smaller US and Canadian vendors have stopped sales to the UK). They then can claim the VAT/import duty back from HMRC at the end of the tax year (as VAT isn’t applicable on goods outside the UK (although the import duty paid by the UK customer is, and can not be claimed back)), meaning the UK government can sit on these charges for anything up to a year before paying back the international vendor. So basically sending from the UK to the US the US customer pays 10% less than the UK customer and sending from the US to the UK the UK customer pays 20% more than the US customer. You got to love BREXIT, and the fact that the Politicos that clamoured for it to happen had absolutely no plans for “how” they were going to do it (the current system for imports and exports being a mess, rushed into place and confusing to all involved (I’m hoping I got my facts right, although I’m probably wrong, but then I have been hit for 20% import duties and “handling charges” multiple times) 🙁

    #1939974
    elessar2590
    18221xp
    Cult of Games Member

    @phaidknott is making my point better than I can. People are only freaking out because this is new. If VAT wasn’t a thing and came into effect this year people would be freaking out the same way. Americans have been getting a very big discount for many years and now it’s just getting slightly smaller.

    I get it’s an issue that people feel feelings about but just being practical, the US discount has got smaller, if that’s a deal breaker then how much more of a deal breaker is the 20% VAT for UK customers? None of these people are calling for it to be abolished, because the tariffs are politically safe to attack and VAT is not new.

    #1940005

    As I was told once playing soccer as a kid, after getting carded, “Attack the ball and not the player”.

    The political decisions made impact business which then come down to my wallet. International business is in upheaval and our hobby industry is being hit without any buffers to it. Being in the US I’ve come to terms with any figures that I buy of interest are generally made outside my country. All of this comes at a cost to me and this niche market just gets to be more expensive.

    No one is crying foul on the behalf of GW as we generally have a collective bitch session on that company. The herd of devotees to that brand will see more pain all over and analysis/opinions can be spouted like projectile diarrhea from a collective prolapsed anus into the void ad nauseum.

    It is the indies that are hurt by a cost of doing business with US customers that have a demand for hobby and entertainment. US gamers will lose  out on knowing the rest of the world and the global gaming community now. I see the US is on track with Oz to see minis being more niche and needing to find ways of dealing with the demand of gamers.

    It sucks on all fronts and makes me ask, how can we keep gaming from being a thing of the past?

    #1940006

    GW is eating the costs. Business and prices as usual.

    It is the indies that are going to suffer.

    #1940016
    avien
    2034xp
    Cult of Games Member

    GW is eating the costs. Business and prices as usual.

    for now. Let’s face it they’d be raising prices eventually anyway. Years of price increases to fuel profitability has left them a nice buffer to be able to look good vs indies who have much lower profit margins. They’ll have their price increases in due course.

    #1940027
    limburger
    22088xp
    Cult of Games Member

    “how can we keep gaming from being a thing of the past?”

    (1) play existing games as you don’t need to ‘upgrade’ everything all of the time

    (2) 3D printer goes *brrrrt*
    You still have to suffer the increased costs for resins, but you could buy that in bulk depending on how much you print and shelf life of the product.

    Remember : we were playing these types of games before it became a big industry.
    We can continue to play long after a lot of these companies are gone.

    #1940115
    sundancer
    43729xp
    Cult of Games Member

    Seb-Games joins in:

    Hi all!
    The unpredictability of the current world situation strikes again.
    As you may be aware or not, the US government introduced new Customs Tariff regulations that remove the $800 “de minimis” rule – i.e., if the order value was below $800, then no import tax was applied. So, from the 29th of August, all US orders coming to the US will be subject to a customs duty of 10%. Sadly, nothing we can do about it.
    But that’s not the worst part. From August 29th, it will be us, the seller, who will need to collect the customs duty from the customer and pay it to US Customs. The problem here is that there is currently no information about any working solution or details on how that will work. Asiad, the typical laconic statements that there will be some “system”.
    This, as you can imagine, creates a big uncertainty on our end, as we have no clue how to approach the problem until further updates.
    We will temporarily stop accepting orders to the US at the end of next week (August 24, 2025) to avoid any potential issues.
    If you are looking to order from us, it’s time to do so to avoid any extra customs fees.
    Please note, this only applies to US customers!

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