US lowers tariffs, making retro gaming handhelds affordable again (for now)
TL;DR The US has lowered tariffs on China, with retro gaming handhelds down to 30%.
Previous rates were 145%, making virtually all handhelds unaffordable in the US.
This is a 90-day pause, meaning the tariffs may rise again soon.
It's been a roller coaster of a year for retro gamers. Exciting new devices like the Retroid Flip 2 and Classic were announced right before a massive tariff hike made them unaffordable in the US. Thankfully, the US and China just announced a new agreement to pause the tariffs (via CNBC), bringing the rate down to 30% for Chinese-made goods, including retro gaming handhelds.
Prior to the announcement, handhelds were taxed at the maximum rate of 145% under the Trump administration's tariffs. This was a dramatic turn after decades of tax-free imports under the de minimis exemption, which eliminated all duties on goods under $800.
The new rates are set at 30%, down from 145% earlier this month.
However, the de minimis exemption is not currently set to return, so buyers will still be hit with import fees on shipments from China. It's not yet clear what the exact terms of the agreement are, but it appears that the 10% reciprocal tariffs are still in effect, with an additional 20% tariff on Chinese goods coming into the US relating to fentanyl. That brings the total to 30%, at least until China and the US can come to an agreement to curbing fentanyl-related imports.
In any case, this is merely a 90-day pause on the full tariffs while negotiations continue. It's impossible to predict what will happen next, so this might be your best chance if you've been holding off on buying a retro gaming handheld.
The full tariffs took effect on May 1, with several retro gaming handheld makers stopping shipments to the US in the aftermath. Retroid rushed to ship Pocket Flip 2 and Pocket Classic pre-orders to US customers before the deadline hit. Expect shipments to resume later this week as tensions cool between the two countries.
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