The US imposed tariffs on wine, cheese and whisky, amongst other products, imported from the EU as punishment for what it considered illegal subsidies. In retaliation, the EU imposed a 25% tariff on certain US goods, including pinball machines, entering the European Economic Area. Although the UK had officially left the EU by that point, it was still in a transitionary period where it abided by EU economic policy.<\/p>\n\n\n\n
That trans-Atlantic spat lasted until an agreement was reached<\/a> in June the following year which suspended those tariffs for a minimum period of five years.<\/p>\n\n\n\n However, the dispute demonstrated the then US leader\u2019s expeditious use of tariffs to punish what he perceived as unfair trade practices.<\/p>\n\n\n\n The US President then was the same as the US President now.<\/p>\n\n\n\n Which brings us to 2025 and a much wider use of US tariffs against, well, just about everyone.\u00a0 And, once again, pinball is certainly not immune to the consequences.<\/p>\n\n\n\n Pinball manufacturing, like most manufacturing, is a global business. Even those making games within the US source a large number of their components from outside the country. <\/p>\n\n\n\n There are multiple reasons for that.<\/p>\n\n\n\n Sometimes, those parts are simply far cheaper to buy from other countries.\u00a0 Plastic moulded parts for sculpts or toppers, for instance, may be prohibitively expensive if bought from US suppliers due to labour, material and property rental costs.<\/p>\n\n\n\n Other times, there just aren\u2019t US manufacturers making those specific parts. Microcontrollers, LEDs, display panels, power supplies, and individual circuit board components are all typically sourced from the Far East where the required skills, equipment and raw materials are concentrated.<\/p>\n\n\n\n There are also quality concerns.\u00a0 Wood for pinball cabinets, backboxes and playfield often comes from countries with more northerly latitudes such as Canada, Scandinavia or Eastern Europe in order to obtain the required hardness and grain density.\u00a0 Softer wood would dent more easily, be less temperature and humidity resistant, and show more of the grain through the ink and clearcoat.<\/p>\n\n\n\n Then there is a lack of capacity in the US. Certain products require specialist production techniques which means those businesses are only able manufacture a limited quantity of their products.\u00a0 It would take years of upscaling along with the requisite investment capital and personnel recruitment, combined with the surety of ongoing increased demand to comfortably expand that capacity.<\/p>\n\n\n\n All of which means any increase in existing tariffs or imposition of new tariffs on those products made overseas and imported into the US will undeniably result in increased prices for US-based manufacturers. <\/p>\n\n\n\n Some will already have good inventory purchased pre-tariffs to build their games for the next few months, but companies launching new titles now or very soon will be hard pressed to hold enough stock to completely avoid the new tariffs. \u00a0Stock requires storage space – which costs money – and also represents capital tied up until the finished product is sold.<\/p>\n\n\n\n Barrels of Fun are in just that position. Their second title launches in around a week\u2019s time, but they say they already have the vast majority of the parts needed to build it, so will be less impacted by the new tariffs. However, even they concede that this position may only be temporary, and they may need to adjust pricing at some point should the new tariffs persist.<\/p>\n\n\n Fortunately, the overall price of a pinball machine is determined by many costs, including staff employment, manufacturing systems, premises costs and promotional activities. So, an increase in the cost of the components doesn’t directly correlate to an equivalent increase in the price of the finished product.<\/p>\n\n\n\n Then there are the non-US pinball manufacturers for whom the US represents their largest single market.\u00a0 Their games, when sold within the US, will attract the new tariffs making their games consequently more expensive in that one country compared to the rest of the world.<\/p>\n\n\n\n Dutch Pinball Exclusive in the Netherlands have already said the price of their Alice\u2019s Adventures in Wonderland<\/em> game will be 20% higher for US buyers as a direct result of the 20% tariffs imposed on EU products.\u00a0 They have deferred shipments to the US in the hope the tariffs will be removed before those US-bound games have to be delivered.<\/p>\n\n\n![\"Barrels](\"https:\/\/www.pinballnews.com\/site\/wp-content\/uploads\/comment\/tariffs-2025\/001-tariffs-2025.jpg\")
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