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.
Discover more from Graphic Policy
Subscribe to get the latest posts sent to your email.
Source: Graphic Policy
