Trump's tariffs have affected Kickstarter prices as well

Kickstarter introduces tariff surcharges to manage costs.

: The Trump administration's tariffs, including a 145% tariff on Chinese goods, have obligated Kickstarter to implement new measures. They introduced the Tariff Manager tool, allowing creators to levy additional charges to cover unforeseen project completion and delivery costs. This tool transparently adds fees to supporters’ payments, designated as tariff-related charges. Creators, however, must navigate potential backer dissatisfaction over these unexpected expenses.

The recent announcement from Kickstarter regarding their response to the Trump administration's tariffs reveals a significant challenge that even impacts smaller creators who rely on crowdfunding for their projects. With some tariffs reaching as high as 145% on imports from China, many project creators are facing increased costs that threaten their ability to fulfill their projects as initially promised. To address this, Kickstarter has rolled out the Tariff Manager tool, which assists creators in integrating additional charges into already fully funded projects to offset these heightened costs.

This new tool allows creators to adjust their financial strategies by adding a distinct tariff-related surcharge to the contributions that backers have pledged. This is clearly labeled as a separate line item in the payment breakdown, which helps to maintain transparency and ensures that backers understand why these additional charges are necessary. Kickstarter emphasizes that the funds collected through this surcharge will be directly allocated to covering import-related expenses faced by creators during their project's fulfillment stage.

Considering the potential backlash from backers, Kickstarter assures that the process remains flexible. Backers are given a choice to refuse to pay the tariff costs, which would then necessitate resolving the matter directly with the creator. This could involve modifications to the backer's pledge or even a refund if necessary. This approach aligns with Kickstarter's intention to foster an environment where project and backer relationships maintain clarity and adaptability in light of unexpected challenges such as these tariffs.

Moreover, the introduction of the Tariff Manager supports the broader objective of addressing the challenge of project fulfillment on the platform, an issue already present as approximately one in ten fully funded projects fail to deliver. Given Trump's tariffs complicating the situation further, particularly for projects dependent on international suppliers, tools such as these become critical in sustaining the crowdfunding ecosystem.

One notable case is Stonemaier Games' lawsuit against Trump's tariffs, illustrating the profound financial impact these could potentially have on companies. As highlighted by Jamey Stegmaier, the co-founder of Stonemaier Games, the tariffs could equate to an additional $14.50 tariff tax for every $10 spent on production with their partners in China, resulting in potential future tariff obligations nearing $1.5 million for the company.

Sources: Gizmodo, Yahoo Finance, Kickstarter

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