Cards Against Humanity's Tariff Tactics: A Complex Game of Global Supply Chain Chess

Cards Against Humanity's Tariff Tactics: Why Printing in the US Isn't as Simple as it Seems In a move that has left many in the board game industry scratching their heads, Cards Against Humanity (CAH) has announced its latest stunt: a "Cards Against Humanity Explains the Joke" edition that reclassifies the game as informational material to avoid import tariffs. This clever workaround raises an interesting question: if CAH is so frustrated with the whiplash-inducing tariff rates, why doesn't it simply print the game in the US? The answer lies in the complexities of modern board game manufacturing. Financial Impact According to a recent report by the market research firm, Statista, the global board game market was valued at $2.4 billion in 2020 and is expected to grow to $3.5 billion by 2025, with an annual growth rate of 7.1%. The US market accounts for approximately 30% of this total value. In terms of tariffs, a 10% tariff on imported games would add significant costs to CAH's bottom line, potentially eroding profit margins and impacting sales. Company Background and Context Cards Against Humanity is a popular adult party game known for its irreverent humor and edgy content. Founded in 2010 by Ben Hantoot and Daniel Gray, the company has become a cultural phenomenon with over $100 million in annual revenue. CAH's decision to reclassify their game as informational material is likely motivated by the desire to avoid tariffs and protect profit margins. Market Implications and Reactions The board game industry has long been impacted by tariff fluctuations, which can make it difficult for companies to predict costs and plan production. In 2018, the US imposed a 10% tariff on imported games, which was later reduced to 0%. This whiplash effect has left many manufacturers scrambling to adapt. Industry experts point out that printing in the US is not as simple as it seems due to various factors such as: Economies of scale: Large-scale manufacturing operations are often more cost-effective and efficient than smaller, local ones. Complexity of production: Modern board games feature intricate components, such as custom-shaped dice towers and painted wooden pieces, which require specialized equipment and expertise. Supply chain logistics: Coordinating with suppliers, managing inventory, and ensuring timely delivery can be challenging for companies printing in the US. Stakeholder Perspectives Industry insiders acknowledge that CAH's decision to reclassify their game as informational material is a clever workaround. "It's a creative solution to a complex problem," says industry expert, Tom Kennedy. However, some critics argue that this move may set a precedent for other companies to exploit loopholes in the tariff system. Future Outlook and Next Steps As the board game market continues to grow, manufacturers will need to navigate the complexities of tariffs and production costs. Companies like CAH will likely continue to explore innovative solutions to mitigate these risks. In the short term, we can expect to see more games reclassified as informational material or designed with tariff-friendly components. In conclusion, while printing in the US may seem like a straightforward solution to avoiding tariffs, it's clear that the complexities of modern board game manufacturing make this option less feasible than one might think. As the industry continues to evolve, companies will need to adapt and innovate to stay ahead of the curve. *Financial data compiled from Arstechnica reporting.*