Rising Tariffs Sink Cost of US-Sourced Android Handhelds, Consumers Forced to Pay Higher Price
Gaming Handhelds: The Trimming of US-China Trade and Its Effect on the Industry
Update 2:47 PM ET February 7, 2025:
In a surprising turn of events, the Trump administration has announced that it will indefinitely hold off on removing the de minimis exemption for lower-value imports from China. This decision comes after a short-lived panic sparked by the initial announcement. The US Customs and Border Protection Bureau will continue to accept these imports without tariffs until "notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue."
Update 8:49 AM ET February 5, 2025:
The US Customs and Border Patrol has officially announced that all shipments from China will now be subject to formal processing fees, regardless of their value. This development may lead to increased costs for buyers.
The Original Story:
In a shocking turn of events, the gaming handheld market has come to a grinding halt. The United States Postal Service (USPS) has announced that it will temporarily suspend the acceptance of international packages from China and Hong Kong due to a recent executive order by President Trump. This unprecedented move could have far-reaching consequences for the industry.
Why is this a Big Deal?
As it turns out, nearly every gaming handheld on the market is manufactured in China and typically ships from there. This includes popular brands like Retroid, which sells on its own website, and smaller companies that operate on platforms like AliExpress. With the introduction of tariffs and customs fees, gamers might face a whopping 30% of the declared value in taxes, plus flat customs fees ranging from $3 to $22.
What Does This Mean for the Industry?
The announcement will likely have a chilling effect on the rest of the industry, as every handheld has to pass through US Customs, which has stepped up inspection and enforcement. The gaming handheld market has experienced tremendous growth in recent years, but this move could put a significant dent in its momentum.
A Dark Cloud Over the Industry
The Biden administration had also proposed removing the de minimis exemption, but never finalized any plans. The results of this change are unknown, but buyers could face not only taxes and tariff costs but also expensive customs fees.
What’s Next?
As the situation develops, we’ll continue to monitor updates and provide more information. In the meantime, if you have any tips or insights, feel free to reach out to us at news@androidauthority.com. You can choose to remain anonymous or get credit for your contribution.
