Among the arts-adjacent Iowa City business set to be impacted by President Donald Trump’s tariffs, a universal sentiment arose.
Uncertainty.
Since his inauguration in January, Trump has repeatedly imposed and backed down from tariffs on imported goods. These products come primarily from countries like Mexico, Canada, and China.
As of April 9, a 90-day pause on these tariffs is in effect, but the situation is rapidly evolving. From the publishing industry to clothing products and everything in between, the tariffs will be felt by businesses nationwide, including those within the arts world.
Chance Kirchhof, the co-owner of Critical Hit Games, had thoughts about their impact on the gaming industry.
“In a nutshell, prices are going to go up,” Kirchhof said. “As we all know, that goes downhill. Manufacturers are going to increase their prices because the materials are more expensive, then the distributors will have to pay more, they’ll charge us more, and we’ll charge our guests more.”
Kirchhof also pointed out parallels between this issue and the adversity his business faced during the height of the COVID-19 pandemic.
“Back then, supply chains were interrupted because of the worldwide pandemic, which is understandable. We can’t do anything about that,” Kirchhof said. “Trump’s tariffs seem very much like a human-made chokepoint that’s going to have similar effects to the pandemic. It’s way less justifiable.”
Kirchhof believes there is a big difference between how the industry should move forward and how it will move forward. He cites the capitalistic nature of most industries, including artistic ones, as the driving factor in why consumers will see prices rise in their hobbies.
“They’re going to raise prices and pass costs down the line. If sales crater because of higher prices, they might move off some products and look at other avenues. I’m not sure what that adjustment is going to look like.”
Kirchhof hopes the adversity prompts companies to see less expensive products and seek more solutions, but he admitted this was wishful thinking.
Raygun owner Mike Draper said there was a great deal of uncertainty surrounding the state of the economy.
“We’ve never had just one person throw the economy off a cliff,” Draper said.
Draper further explained how the administration’s goal of bringing manufacturing to the U.S. is faulty. When tariffs were in effect in the 19th century, the border was open for immigration, which encouraged manufacturers to staff their factories with cheap labor. Then, once the manufacturing base was built up and goods could begin being exported, tariffs would be lowered to nurture trade.
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“You cannot build a manufacturing base without an influx of millions of people,” Draper said. “If you’re representing the party that wants to actively deport people, like students, not to mention not open your borders to new people, you will never have the staff to run these factories that you want to see in America. It would be like if I tried to increase sales at Raygun by dropping the price of everything to $5 and then locking all the doors,” Draper said.
According to Kirchhof, the tabletop gaming industry faces a similar problem. The games that stock the shelves at Critical Hit are manufactured at printing plants globally. Kirchhof doesn’t believe the infrastructure to take on that manufacturing exists in the U.S.
The administration’s uncertainty also impacts Sydney Ji, manager of Asia Plus Asian Market, a business in which importing goods from other countries is essential. Her business has a three month plan to take advantage of the 90-day pause on the tariffs.
“Food is essential for people. Right now we plan to stock up on inventory before the next shipment,” Ji said.
Ji echoed fears about Trump’s unpredictability, but she hopes he’ll at least sit down and have conversations with other world leaders. Ji also expressed disapproval over how a trade war between countries has severe repercussions on citizens who don’t have any say in the matter.
From hobbies to necessities, the tariffs have the capacity to drastically alter what consumers are spending their money on in the coming months. In this era of economic fluctuation, businesses like Critical Hit can only hope for the best.
“I hope I’m wrong,” Kirchhof said. “I hope the distributors and manufacturers surprise me.”