Tag Archives: tariff

Trump Enacts Tariffs on Canada and Mexico and increases Chinese Tariffs

Posted on by

President Trump has implemented a 25% tariff on imports from Canada and Mexico after a one month pause and each of those nations agreed to his initial demands. The tariffs went into effect today. Goods imported from Canada and Mexico will be taxed at 25% with energy subject to 10%. Chinese imports have seen their tariffs increased to 20%, doubling the previous 10% implemented in February.

Canada retaliated with tariffs of their own, 25% on $155 billion (Canadian, $107 billion US) worth of goods with an immediate tariff on $30 billion of that. The remaining amount will be implemented in three weeks. Comics can be considered under “Children’s picture, drawing or colouring books,” or “Newspapers, journals and periodicals, whether or not illustrated or containing advertising material.” Both are listed in Canada’s listing of goods impacted as part of the second round. The Canadian government is seeking feedback on that list so this is an opportunity for the comic industry to speak up concerning the negative impact.

Mexico will also be implementing retaliatory tariffs in response.

In response China implemented a 15% tariff on US farm exports and will be expanding the number of US companies subject to export controls and other restrictions to about two dozen.

A tariff is a tax imposed by a government on goods that are imported or exported. The tariff is paid by the companies that import the goods to the country and the tariff then goes to the government’s treasury. That increased cost by the importer is then passed down to the consumer in increased prices. Even goods not impacted by tariffs could see increased prices.

Trump initially said he was implementing the tariffs in response to the flow of fentanyl from each country. While the numbers and facts don’t support that being a reality, Canada and Mexico responded to help further stem the tide. Fentanyl crossing the Canadian border into the US is near zero according to Canadian officials.

The Cato Institute, a libertarian think tank, in 2023 reported that 89% of convicted fentanyl traffickers in in 2022 were U.S. citizens. When it comes to smuggling, 99% of the smugglers are U.S. citizens. In 2023 93% of seizures occurred at legal crossing points, no illegal immigration routes. Less than 0.009% of people arrested by the Border Patrol during illegal crossing possessed any fentanyl.

Now, Trump has latched on to the belief that free trade costs Americans jobs in manufacturing and stifle “American prosperity.” Mainstream economists contend that protectionism is costly and inefficient. One thing is agreed upon, it will increase prices on goods, in essence a tax on consumers.

The tariffs are possibly a death blow to the comic industry as well as a gut punch to the tabletop game and toy industry.

Greg Ahearn, president and CEO of the Toy Association, said the 20% tariffs on Chinese goods will be “crippling” for the toy industry. Nearly 80% of toys sold in the U.S. are made in China.

There’s a sophistication of manufacturing, of the tooling. There’s a lot of handcrafting that is part of these toys that a lot of people don’t understand … the face painting, the face masks, the hair weaving, the hair braiding, the cut and sew for plush to get it to look just so. (That skilled labor) has been passed through generations in the supply chain that exists with China.

Ahearn said even if production were to shift to the United States, that what’s offered in China can’t be replicated overnight.

When it comes to other entertainment industries, it is estimated that over 80% of comics are printed in China with 80-90% of board games estimated to be manufactured there. The comic industry, even if printed in the US, relies on paper produced in Canada.

The decision is another blow to the comic industry that will cause publishers to make hard decisions about future publications. Working many months ahead, many will be hit for product already being published and will have to rethink future endeavors. The options for printing in the United States are limited and currently can not keep up with the demand or have the same capabilities as foreign publishers. There are some European publishing facilities. Economic indicators show consumer spending has also decreased with the Economy likely to experience a recession this first quarter after previous expansion. Add on the cashflow issues stemming from Diamond Comic Distributor’s Chapter 11 declaration, 2025 will likely see a massive contraction in the comic industry impacting publishers and shops forcing many to close due to the current negative economic conditions.

Canadian and US tariff war put on pause for 30 days, just Chinese tariffs remain

Posted on by

Much like with Mexico, President Trump backed down and caved on his threats by pausing the tariffs was going to implement for 30 days. In the end, Trump has gotten things already promised and drove the stock market lower. On Saturday, President Trump said he would implement a 25% tariff on goods imported from Canada and Mexico as well as a 10% tariff on goods imported from China.

Canada retaliated with threats of legal action as well as 25% on targeted American goods. Numerous provinces took further action canceling contracts with businesses owned by Elon Musk and imposing greater costs to his businesses and products.

Today, both the tariffs on Mexico and Canada have been paused for 30 days after the leaders of the each nation talked to strike a deal. In the case of the Mexican negotiation, Trump not only received already agreed upon things but more commitments he will have to follow. For Canada, it was also exactly what was agreed upon previously. Just the 10% tariff on China remains.

The impact of the tariffs on the American comic and tabletop business would have been devastating as they mostly print in China, Mexico, and Canada.

Trump has claimed the tariffs are in response due to “illegal immigration” and the flow of fentanyl across the border.

The Cato Institute, a libertarian think tank, in 2023 reported that 89% of convicted fentanyl traffickers in in 2022 were U.S. citizens. When it comes to smuggling, 99% of the smugglers are U.S. citizens. In 2023 93% of seizures occurred at legal crossing points, no illegal immigration routes. Less than 0.009% of people arrested by the Border Patrol during illegal crossing possessed any fentanyl.

The threat of tariffs are impacting all industries including comics and tabletop games. Both rely heavily on printing in China, Mexico, and Canada and increased costs and delays would leave massive damage and likely force the closure of numerous publishers. The comic industry is currently also facing issues with its largest distributor who recently filed Chapter 11 and owes tens of millions to its creditors.

Trump’s Tariffs on Mexico are Paused for One-Month

Posted on by
Flag of Mexico

On Saturday, President Trump enacted a 25% tariff on imports from Canada and Mexico as well as tariffs on imports from China at 10%. Canada responded soon after with tariffs on their own on some imports from the United States, while Mexican President Claudia Sheinbaum. only referred to enacting “Plan B” in her addressing the actions by Trump.

The planned tariffs on imports from Mexico are now paused as Mexican President Sheinbaum has agreed to supply 10,000 Mexican soldiers on the border. In 2019, Mexico sent 15,000 troops to its border and in 2021, Mexico sent 10,000 to the border.

Not mentioned in the US account of the negotiation is President Trump’s agreement that the U.S. had committed to stop the flow of guns into Mexico among other things.

Trump has claimed the tariffs are in response due to “illegal immigration” and the flow of fentanyl across the border.

The Cato Institute, a libertarian think tank, in 2023 reported that 89% of convicted fentanyl traffickers in in 2022 were U.S. citizens. When it comes to smuggling, 99% of the smugglers are U.S. citizens. In 2023 93% of seizures occurred at legal crossing points, no illegal immigration routes. Less than 0.009% of people arrested by the Border Patrol during illegal crossing possessed any fentanyl.

The tariffs are impacting all industries including comics and tabletop games. Both rely heavily on printing in China, Mexico, and Canada and increased costs and delays would leave massive damage and likely force the closure of numerous publishers. The comic industry is currently also facing issues with its largest distributor who recently filed Chapter 11 and owes tens of millions to its creditors.

Canada taking legal action against the U.S. over Trump’s Tariffs. Comics and Games not on Initial List of Canadian Tariffs

Posted on by
Canadian flag

Captain Canuck to save the comic industry? Canada has announced that it is taking legal action challenging the 25% tariff imposed by President Trump and the United States impacting most Canadian goods. The tariffs are being called “illegal and unjustified.”

On Saturday, President Trump announced a 25% tariff on goods imported from Canada and Mexico and 10% tariff on goods from China. In response Canada announced a two phased tariff of 25% on American goods imported in response.

Canada’s initial wave of what’s being tariffed includes 1,256 items expected to cause an impact on the American economy and companies. It includes food and drink, automotive parts, clothing, cosmetics, luggage, furniture, tobacco, lumber, paper, and more.

It does not look like comic books or tabletop games are part of Canada’s initial items to be tariffed this week but a longer, second list will be released in a few days.

Canada announces a 25% tariff on American goods

Posted on by
Canadian flag

Canadian Prime Minister Justin Trudeau has announced that Canada will be implementing a 25% tariff on American imports. This is in response to President Trump slapping Canada, Mexico, and China with tariffs earlier today.

The tariff is on a host of American goods. The first part is a 25% tariff on $30 billion worth of American goods coming into Canada beginning Tuesday February 4. It would then be applied to $125 billion worth of American imports in three week’s time, in hopes Canadian companies would be able to find alternatives before then. We’re working to get details on exactly what this impacts and if there are exemptions.

The impact on the comic and game industry becomes murkier. It is estimated that over 80% of comics are printed in China with 80-90% of board games estimated to be manufactured there. Both industries would easily be able to continue their printing operations outside of the US and likely get around the tariffs. However, if production were to shift to the US, they would likely be impacted by the tariffs on top of increased production costs in the US due to tariffs on paper imported from Canada, in effect taxed twice.

Mexico has also announced a response to Trump’s tariffs, “Plan B,” though details have not been released.

President Trump enacts a 25% tariff on Canada and Mexico and 10% on China threatening the comic and game industry

Posted on by
hundred dollar bills

President Trump has imposed a tariff on imports from Canada, Mexico, and China, the United States’ three largest trading partners. The reasoning given is the three country’s role in undocumented immigration and drug smuggling.

American importers will pay a 25% tax on goods from Canada and Mexico and a 10% levy on products from China. Canada and Mexico generally have not faced tariffs under a previous trade deal signed by Trump during his first term. Many Chinese goods currently incur a 25% tariff. This would be in addition to that. The exception is energy products from Canada which will be a 10% charge.

A tariff is a tax imposed by a government on goods that are imported or exported. The tariff is paid by the companies that import the goods to the country and the tariff then goes to the government’s treasury. That increased cost by the importer is then passed down to the consumer in increased prices. Even goods not impacted by tariffs could see increased prices.

The Cato Institute, a libertarian think tank, in 2023 reported that 89% of convicted fentanyl traffickers in in 2022 were U.S. citizens. When it comes to smuggling, 99% of the smugglers are U.S. citizens. In 2023 93% of seizures occurred at legal crossing points, no illegal immigration routes. Less than 0.009% of people arrested by the Border Patrol during illegal crossing possessed any fentanyl.

The decision will have a negative impact on the comic and game industry as each country is where many are manufactured and printed or require supplies (like paper) from. Trump has admitted that the tariffs will increase the cost of goods.

It is estimated that over 80% of comics are printed in China with 80-90% of board games estimated to be manufactured there.

The decision is another blow to the comic industry that will cause publishers to make hard decisions about future publications. Working many months ahead, many will be hit for product already being published and will have to rethink future endeavors. The options for printing in the United States are limited and can not keep up with the demand or have the same capabilities as foreign publishers. There are some European publishing facilities. Add on the cashflow issues stemming from Diamond Comic Distributor’s Chapter 11 declaration, 2025 will likely see a massive contraction in the comic industry impacting publishers and shops forcing many to close due to the current negative economic conditions.

China, Mexico, and Canada Tariffs threaten to go into place this Saturday

Posted on by
Dollars

President Donald Trump has set a deadline of February 1 to implement a 25% tariff on imports from Canada and Mexico as well as a 10% tariff on China. The President has claimed the tariffs are due to fentanyl coming into the US from those countries. Some reports have said the tariffs would be announced this Saturday and go into place March 1 though the White House spokesperson Karoline Leavitt has said that the tariffs would take effect immediately.

The final tariff rate is unknown and there may be some exemptions but those would be “few and far between” according to administration officials.

The tariffs would threaten to disrupt trade an imports. The tariffs would be devastating to the comic and tabletop game market forcing an increase in prices. Tariffs are paid by firms importing the goods and those increased costs are then passed along to consumers.

China, Canada, and Mexico are all popular locations for the printing and production of comics and tabletop games. The increase in tariffs would result in an increased production cost as there are few options currently to move that entire production to within the United States where current costs are higher than those available elsewhere. There are some options in Europe. But, even if production was moved to the US, Canada is one of the top countries the US imports paper from. Canadian Prime Minister Justin Trudeau stated that Canada would respond to the tariffs.

Any disruption would create further ripple effects for the comic industry which has already seen massive disruption this year due to the Chapter 11 filing of its top distributor Diamond Comics. The combination of money owed by Diamond to smaller publishers plus and an increased cost for future production could result in numerous small publishers folding this year.

We’ll have further details when the full tariff announcement has been released.

Trump’s Tariff War with China is Already Impacting Comic Creators

Posted on by
shipping container boat

We spoke about Trump’s trade war with China and the raising of tariffs to 25% of items from the country in our second episode of Graphic Policy Weekly. Tariffs are a way to “even out” the cost of foreign goods so they’re on par with domestic goods.

While President Trump claims that the foreign government pays the tariff, that’s incorrect. In reality the importer does and that cost is passed along to the consumer in the retail cost of the goods. It’s a tax on consumers.

Much of the comic, game, and toy industry’s production is in foreign countries, especially China, and thus this policy is directly impacting our hobbies.

John Fleskes has spoken out about the impact of the tariff on his company, Flesk Publications. Flesk Publications is a high end art book publisher of which many art books highlight the talents of comic artists. You can read his full post below.

As he points out, this policy also include Hong Kong where his books are printed. He has checked on working conditions, which he describes as “stellar,” and has verified that the paper and materials have been sourced in an environmentally and sustainable way. The facility is “clean” and a “professional environment.” This directly disputes the narrative of “slave labor” producing our goods.

As he describes in his post, this policy decision directly impacts his company making it go from a “good year” to a possible “negative year” and that hiring a new employee won’t happen and bonuses provided to employees won’t happen. Prices up books will also go up while production will be on hold for future books.

Read his full post below while another good read about the reality of book production can be found here.

We have been notified by our shipper today that by the end of June there will be an implementation of the 25% duty tax that will effect books manufactured and imported from China. This includes Hong Kong (where we have our printing done).
At the moment, we have Ballpoint Beauties by Frank Cho, the new Terry Dodson sketchbook, Bombs Away, and the new Art of Gary Gianni for George R.R. Martin’s Seven Kingdoms in transit with an arrival date in the US port at the end of June. If our books arrived a week or two earlier, we would have avoided the duty tax. (Update: This is up in the air at the moment.)
As a small publisher, this is how a sudden duty tax will affect us.
We plan our book releases anywhere form 8-12 months in advance. At that time, we set our cover prices, then promote and advertise the book, as well as list it with our distributor. We sign contracts with the printer so that we can secure a quote, then they order the paper and place us into their production schedule. Unlike just about every other item you find in a store, the cover price is printed on books. So, if a publisher is hit with a sudden tax or unexpected expense, we can not adjust the cover price to compensate. The discounts with the distributor have already been negotiated. I cannot charge the distributors more to compensate. The duty tax comes straight out of our narrow profit margin.
In essence, because of this duty tax, I am preparing for the following. Due to the direct loss to our profits:
1. We will not be able to hire the new employee that we planned in securing this summer.
2. We already signed our printer contract and set the pricing for Spectrum 26. Due to the duty tax, our profits for this book will be greatly reduced. Our 6 months of work on this title will break even, at most.
3. We will not be able to provide the bonuses that we normally provide to our employees.
4. Any funds that we planned on saving for the future are greatly compromised.
5. All of our plans for growth are on standby since we have no idea how this duty tax will be implemented.
6. All books in development are currently being produced, but are on hold as we learn how this will impact us further.
7. All book prices will go up to make up for the duty taxes. How much? We can’t tell yet.
We are going from having a good year, to having a possible negative year due the trade wars.
We need a full year notice if new duty taxes are going to be implemented. That would give us time to plan and make changes. Unfortunately, using printers in the US is not an option. They charge upwards of three times the costs, even after shipping, than China or Hong Kong printers do. Also, the facilities and printers who can print deluxe hardbound books simply do not exist in the US. It would take years for someone to invest in the creation of a premium US art book printer, and it would be a risk since if the duty tax was to be removed in the future it would put them out of business. Creating incentives for US companies to grow manufacturing here, instead of penalizing us for going outside of the US for manufacturing, would make more sense in my opinion. The infrastructure simply does not exist in the US for us to print here. We have no choice but to go overseas.
This will be a tough year for us. We’ll get through it. We’re strong, yet we wish we didn’t have to be.
I’m saddened though. Saddened that I can not take care of my family and employees like I had hoped this year. I’m saddened that much of the slim profits that we make will be taken away from us by a trade war. Publishing is my passion. Making books is my great love. Not even a duty tax will stop us, as much as it may try. But it will be one hell of a speed bump to drive over.

Recent Entries »