SACRAMENTO, Calif. — COO of board game publisher Cephalofair, Price Johnson, said many in his industry face uncertainty over high U.S. tariffs on Chinese-made products, where most board games are produced.
“Small businesses like me, medium-sized businesses, large businesses are ceasing production, until it makes sense again,” Johnson said. “Until we can know what our prices are and those prices aren’t in a daily, you know, volatile situation.”
Johnson said Cephalofair employs eight people and has sold over three million games.
From a January order before tariffs were levied, he said they currently have $1.2 million in products stuck in China because of new tariffs over 140% on Chinese-made goods.
“It’s now more expensive to land that product here in the United States than it was to produce it,” Johnson said. “It’s also completely eliminated my ability to put our product into wholesale. So that means we’re looking at foregoing our domestic retail and distribution models.”
A very worrying prospect, Johnson said, as the U.S. market makes up the lion’s share of their business.
“The American market is key,” Johnson said. “It represents about 60 to 70% of our of our annual revenue.”
President Donald Trump said the tariffs are aimed at addressing the trade deficit between China and the U.S., and counter what he said are unfair Chinese trade practices.
“For years, we’ve been ripped off and taken advantage of by China, and others in all fairness, but by China, that’s the big one,” said Trump.
The China tariffs have alarmed California Gov. Gavin Newsom, as over 25% of the state’s imports came from China in 2023, while exports to China totaled over $16 billion.
In response to U.S. tariffs, China imposed over 100% tariffs on U.S. goods, prompting Newsom to request exemptions for California products.
“I remind all our international trading partners,” Gov. Newsom said. “California is a stable trading partner, and we hope you consider that as it relates to California made products.”
With tariffs coming on, then off again, on many different countries, it’s tough for businesses of all sizes to know where to turn for manufacturing solutions, said associate professor of economics at UC San Diego Kyle Handley.
“The uncertainty is a huge factor,” Handley said. “For large businesses, even down to small businesses, because it’s costly to move your supply chain.”
That uncertainty across the board Johnson said for his company, has them already thinking about tough business decisions.
“The reality is we don’t see quick change and reverse action,” he said. “We’re looking at harder decisions in the months to come.”
Decisions he said they hope they won’t have to make so he can stay operational.
