How Trump's Tariffs will Affect Your Hobby Store
The effects of "trade war" could devastate your favorite pastime
Before opening on a Wednesday afternoon, a quietness hangs over the air at Gundam Planet in Hackensack, NJ. The only sounds to break it are the occasional footsteps, work on shipments and the opening theme of Mobile Suit Gundam GQuuuuuuX on a TV near the register. It is the day before the midnight release of the first model kit from the new series and the business prepares itself for what could be a busy night. Despite this calm atmosphere, the model kit and merchandise vendor has been experiencing a turbulent and frustrating month.
In the wake of President Donald Trump’s 145% tariff on China and 24% tariff on Japan, Gundam Planet posted an update regarding how the increased importation costs would affect its business on its website and social media platforms. This included halting preorders for certain products, clarifying how pricing changes will occur, and creating a “tariff-affected item” tag that marks items on their website.
Facing the unpredictability of tariff pricing, some companies have stepped up to protect vendors. Nick Minarik, VP of Operations at Gundam Planet, said that Bandai “hasn’t passed on any of the costs” to the store. The result of this is that Bandai items have not currently been affected by tariff pricing, but prolonged tariffs could result in changes.
”We can’t expect the manufacturers to eat the cost forever so something might give down the road and we’re just waiting to hear how that is,” Minarik said. “It’s become a fact of life where we don’t have information and things could surprise us at any moment.”
An aspect of the uncertainty caused by the tariffs is items changing in price during shipping. Due to Trump’s shifting of tariffs on nations like China, vendors who ordered a shipment of a product for an expected price saw a significant price increase once it arrived in the United States. Minarik said that these shipments could be “economic cruise missiles” that could destroy smaller businesses.
”You just got told, ‘Screw you, $30 grand please,’” Minarik said, referring to how a $20,000 shipment could increase to $50,000 after landing at a U.S. port. “It can destroy lives. It could be catastrophic for places who might not have the pull of us.”
To consumers facing this new market, not everything is totally clear. Not every business has disclosed how their pricing will change as a result of raised importation fees. This could create fear for those looking to get into hobby spaces, as they don’t know if their new pastime could rip into their wallets or possibly vanish as manufacturers exit the U.S. market.
The effects of prolonged tariffs on the hobby market could be devastating. While he does not have any estimates currently, Minarik said that the effects of extended tariffs could lead to shaved down preorders and cancellations. If faced with too hostile of an economic landscape, Minarik said that some manufacturers may just exit the U.S. market entirely until conditions improve.
“If they have to collect and double the cost of invoices from businesses, they might just be like, ‘You know what? Forget it. We're not sending it over there until this takes it,’” Minarik said. “And that is just a casualty of trade war.”
With their public statements on the tariffs and updates to their customers, Minarik and Gundam Planet have kept their customers in the loop about what will change. Minarik said that by treating customers with respect and answering their questions personally, he hopes the customers will give respect back during these uncertain times.
“I’m treating the customers the way I want to be treated by my suppliers,” Minarik said. “That’s always how it’s been always been. We are all consumers of something, why are we not exhibiting the behavior that we would like to see from the places we consume from?”
Small businesses and vendors need a consistent customer base during these volatile times. Gundam Planet and Minarik have focused on creating “good energy” with events like the midnight release of the GQuuuuuuX model kit. By supporting its community, Minarik hopes that the business can give back some positivity after 15 years of support.
“Despite everything that's going on, despite the fact you might be a dollar or two more expensive, despite the fact that maybe your package gets misrouted because USPS made a mistake, and an Amazon driver doesn't just drop it at your door,” Minarik said. “Thank you for allowing us to continue doing what we're doing and allowing us to have the resources to foster the community and be more than just a business.”