The Trump administration's increase in tariffs is affecting a lot of businesses, even board game companies.
Price Johnson, the COO of Cephalofair Games, told us he got his start in the board game industry professionally eight years ago and has been doing it full-time ever since.
It started as a passion and side job while he was working full-time at his other job for local credit unions in the greater Sacramento area. This is also where he learned about retail, customer service and central business operations within the financial credit union industry.
He found a publisher who needed some heavy operational help, and threw his hat in the ring for the job. It's been his full-time gig ever since.
His business manufactures in China; a good 95% or more of their industry produces in China, as most tabletop games and toys do.
Johnson says they don't have the capacity, capability, technology, expertise and engineering in the U.S. domestically. He says he would love to have those options available to him.
He did tell us he works with some local manufacturers who can do more simple things like cards and promotions, but they are not able to build full-scale games because they would have to source from China as well.
Johnson explains, "Our entire industry, whether you're a mom-and-pop toy store or retail store owner or a publisher like myself who's been curating a relationship with a manufacturer overseas for the last 10 years—who knows our components better than we do in a lot of ways—it means we're at a standstill. Our hands are tied until the Republican Congress decides to step in and reel in this administration and their trade policy."
Jonny Pac, a game designer and developer, says that in regard to the industry -Â they're in shock right now with the significant increase in tariffs, and it's making the games more expensive.
Pac says, "They're already big, custom, expensive games that don't have a big margin, and that little difference is a big difference. And some companies have been caught in this dilemma where if they've already had their stuff manufactured, if it's already been shipped and is going to go to the port, they're going to get slapped with a fee that they're probably not going to be able to afford, and they're in panic mode."
Johnson tells us they started adjusting prices when at first it was a 20% tariff, then it changed to 54%, and they cautiously started changing prices again. Before they could publish those next price increases, the tariffs jumped to 104%, and then 145%.
Because of this, he says it would be irresponsible for them to try and start locking in new prices.
Right now, they can't do anything except strategize the inventory they have on hand right now and make it last as long as possible in the United States - because they can't bring new product in to the United States at a 145% tax rate.
Johnson tells us, "We're paying for warehouse storage in China to keep that product there, and we're moving it internationally to our markets that are impacted by tariffs like Europe, the UK, Canada, Mexico, and Germany. That's where our product has to go until the U.S. decides what we're doing with our trade policies."
Pac says a lot of businesses are trying to wait the tariffs out.
He goes on to explain, "They're unwilling to go and start a campaign because they don't know what to charge the backers. Because they say, 'If we charge you the tariffs now, then you'll at least know what you're getting for it. But if in 6 months or a year when we fulfill this, the tariffs are more or less, then we'll have to refund thousands of backers to make the difference or not, then you're going to hate us and profit off this situation, which we don't actually believe in."
Johnson says the U.S. accounts for a minimum of 65% of their sales, which is their biggest regional sales region, but they can't make their product domestically because they don't have the resources.
Pac adds, "There is no domestic alternative for manufacturing these goods; there's absolutely no way to source these materials or machinery or expertise that China offers. There are a few European manufacturers that cost more that can only do some materials still."
They even have special machinery and tools they use overseas that will be a lost investment to them if they do have to pivot.
Pac also says, "There are some other companies that regionally announced that they are stopping productions and developments because they can't afford this part."
Right now 60% to 70% of their sales channel is cut off, and they can't anticipate when that product will make it into the U.S.
Not to mention their holiday season has already been penalized by this policy, and they are now behind several months. Now they're feeling it will impact 2026.
Johnson says, "This really needs to be something that we see an impact on sooner rather than later. And if we don't, we're going to have to make some harder decisions in regard to potential furloughs and shuttering parts of our business that just don't make sense without 70% of those course hills there until… we don't know when… until we see how long that needs to take."
He adds, "We can't keep making changes; it really seems like there was a lack of a solid plan to these negotiations, and so all of us are just waiting for this to come to an end."
Johnson says he would love to see a renaissance of domestic manufacturing and see more federal investment and grants and long-term programs to incentivize someone's American dream to, for example, own a factory.
He explains, "Empower them to do that, but you can't just shut down entire industries of small and medium-size enterprises on the contingency that 'Well, once we get our way with negotiations or we strong-arm big business into making these manufacturing options, you can't shut us down and now rely without our primary sales channel.'"
"We don't have the sales to stand up our own manufacturing; we didn't in the first place, and we certainly don't if we're not making our largest amount of sales. And especially not if we're also going to have to pay tariffs on that machinery, on those raw goods, on those materials we still have to source from China. Even if the manufacturing capabilities are here, things like ink, cardboard, or types of linen— those are coming from very specific specialized places overseas; we're going to have to import that regardless."
He adds, "I'm all for domestic manufacturing, but that's a long-term road map that's not something you build by imposing penalizing tariffs on small businesses."
As board game companies work on bigger projects and games, publishers are unwilling to help create these games because they don't want to get stuck with the tariffs.
Pac says, "The thing I think we can't replace is when a company goes bankrupt or falls apart in this little period, and let's say the tariffs go away in a month. The companies that already fired everybody and liquidated and whatever's gone sideways for them; I don't think they can just pop back and say, 'Just kidding, everybody gets their job back.' I think some things actually fall apart in that."
Right now, every other day they see a business within their industry closing. We've seen a number of publishers already close their doors, laying off their entire staff, and they have distribution partners who are having a hard time figuring out what inventory they have available to them and what it's going to be priced at.
Johnson tells us, "It is a real end scenario here that we have to shutter down the business. We have multiple products that we already had preorders for. I have 60,000 units of product that we have taken preorders on that are sitting in China right now that we owe those customers, and unless we decide, 'Sorry, you're not getting it;' we have to protect our finances and ourselves to make sure that that investment they made in us, they believed enough to order that product that we're going to protect it and get to them eventually."
They don't know when, but they say they know they have the responsibility to get them their product.
He adds, "As far as us getting new product from overseas, I can't even get the product that was already made. Product that went into manufacturing at 0% tariff rates, before we even had a signal from the White House, 'Yeah, it's going to be a 20% plan for 20% or a plan for 40%.' We weren't given any indication through his candidacy or the first couple of months of his administration. We didn't know what it was going to be until the liberation day that was teased."
He says they never imagined the costs would double overnight.
Pac asks the community, "Keep playing board games. And if there's a little delay, try to be patient with your publishers, who are probably panicking a little bit right now. If you can support them by buying the games that they have in print right now, that still helps them."
Johnson told us he's been reaching out to their representative at the White House and hasn't heard back.
He says he's been calling D.C. and the local Rocklin office for his local congressman, Republican Kevin Kylie.
Johnson says, "Congress is supposed to be the one that has the strings of the purse here, and if they're just allowing the White House to change tariff rates every other day, that's not something we can set our watch to; we can't conduct business that way."
He also says they feel helpless as their messages go unreplied to, emails go unresponded to, and they are even hung up on by their local representatives office.
He adds, "Right now one of the most productive things we can do is appeal for that representation we need. We're not supposed to be taxed without representation. Well, our business is being taxed 145%, and I can't get my congressmen on the phone."
"I get that we do board games; that's a very niche product. It's a luxury item. It's not a necessity. It's not bread, it's not eggs, it's not milk; and I recognize that and respect that, but our story is true for nearly any product you can find at your local store or big box store, whether it's an electronic, a microwave, or a toaster. This applies to the vast majority of consumer goods."
And mentions, "What I was taught in my textbook growing up is this is the point in time when we're supposed to be dumping tea into the bay; we're past that mark already."
